BABA: Comparing Time Frames for Clarity. Did We Find Something?BABA has recently been beaten down by bad news losing almost 20% of it's entire value in just over two weeks.
This puts us past a simple correction and may indicate participants are looking for a new price level and new technical structure.
The bulls did a great job on the way up (since March) however they did not technically build out a lot of trend support. That's what the bulls are dealing with right now. A lack of uptrend technical support.
We do have some horizontal support lines we will be watching along with a potential price zone. IF price gets to this area I expect buyers to step in. However, with the lack of technical trend support, it may be difficult for the bulls in the near future.
Indicator
When we look at our CDV on both time frames, we see a possible indication of further bull action still in the market on the 2Day time frame. This signals bullish momentum is still in the market and we may reverse soon.
However, on our 8h time frame, our CDV is completely inline with price action, leaving up us to question, who really has control?
I've marked out historically how closely price action has correlated with the CDV for clarity. There is usually about a +/-3% buffer between the two.
NYSE:BABA
