The Long Investor

$BABA TOP 20

Added 2024-01-24 17:30:23 +0000 UTC

China is freeing up cash, lowering lending rates, curtailing short selling and buying up Chinese equities....they are working hard this week, we called for this back in September but better late than never.

Xi must be a chartist because he caught the Hang Seng at the double bottom and when the RSI was in the oversold territory.

I don't think there was any reason to let this go so late, considering deflation has been an issue for a few months now.....when an economy has deflation, you stimulate, especially when you have a mountain of it at your disposal.

I think it would be fair to expect some resistance at the red trend line, which was the resistance level in December, so I have added in the white Fib levels to show where support can come if this pulls back....this is where I will be adding.

That being said, a break above the red line at $76.60 and the price holds, then this is very bullish and we have a higher support level and regained this important red line.

It is not a surprise to see that the 200 Day MA aligning with the top of the yellow wedge trend line.....above this level and the trend has confirmed to have reversed.