Analysis

7/7/18 Trade Idea : Long $BABA

With all the chaos caused by Trump and his tit for tat trade war (with China) it’s made it very hard for me to make sense of any markets technical’s.  Massive volatility, huge candles, total loss of structure and direction.  It’s been a minefield for me.

That said, as last week closed the price action started to make a little more sense.  Structure came back, the pivots found some order and the levels I’d been looking for came back into focus.

As I was scanning some stocks over the weekend I did some analysis on $BABA and it looks like it’s set up to continue it’s recent rally.  In hindsight the optimal entry would have been around $188.60 as it’s recent pivot level breakout confirmed but I still think there is opportunity to get in and ride a nice upward push.

In terms of entry I’m in two minds here.  Either price will push higher on Monday or it will retest the pivot level breakout.  Given the ongoing concerns around China and the size of Friday’s candle I’m leaning toward a small retrace and test, before price pushes on.

Here’s my marked up chart.  If anyone has any thoughts / builds then please share.

7_6_18_BABA.png

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