$BABA TOP 20 - IMPORTANT NOTE - SUPPORT LEVEL
Added 2024-07-11 09:39:16 +0000 UTCWe watched $BABA test its 200 Day MA yesterday from below and on the strength of positive movement from the HSI today, $BABA has now broken above its 200 Day MA now in the PM.
We know that a breakout is a good sign but we also know that a breakout, followed by a retest is when we can confirm that a breakout has been flipped to a support level, it is not based on time, it is based on a test of support, a test of support can happen once or twice, even multiple times....a breakout and retest typically do not happen on the same day....after a test has held support, we want to see a series of higher highs and higher lows......
There is a lot of confusion amongst traders and investors and their lack of understanding of a support levels and how to confirm when a level has been flipped to support, many believe it is based on time......time has nothing to do with it, fake breakouts happen a lot, only when a full confirmation that a level has been flipped to support should we enter, this means the risk of a break down has been reduced greatly.
The 50 Day MA is also slightly higher at $78, so clearly both of these levels would have us in a comfortable position to add too.
