$BABA TOP 20
Added 2024-02-06 10:21:20 +0000 UTCWe have been all over this price action and since the potential bottom hit at $66 and went to the 50 Day MA on the 24th of Jan, our focus then switched to the pull back and we noted that the 0.5 Fib on the Blue line at $71 was the level we wanted to see hold to complete Subwave 2....this is exactly what happened.
This is a very coincidental time too..... just before earnings release, at the same time where the HSI needed to hold its 0.5 - 0.618Fib support level and when the Chinese govt are now aggressively stimulating the economy and the stock market.
So $BABA has everything at its disposal now to reverse....it needs to post a beat on its earnings now, it can not slip up, another strong performance like its Q3 report will be more than enough.
We can see that the PM price is up +4% now....and is exactly at the at the red line now at $77, this is not a surprise either, we know this has been a very important resistance/support line so a flip of this level back to support and we have our reversal I believe.
I have added in the impulse wave now for the subwaves because of the 0.5 Fib support for Subwave 2.
Flipping the $77 level to support and I will add again.
Wave 3 is where the gap fills to $87 and the 1.618 Fib, so this is an important level to watch for after holding above $77.
I am already green on my position but I am keen to add to such an undervalued position.
