The Long Investor

$BABA

Added 2023-05-23 22:17:32 +0000 UTC

So a very strict and neat Bull pennant has been formed here. I have circled a smaller one on the chart in December 2022 and the illustration shows how it is supposed to look as well.

The illustration is almost exactly what we are seeing on the larger one here and we are getting tight into this pennant now, so the theory is that the trend before entering the pennant shall proceed in the same direction as it leaves the pennant....so as we can see here, the trend was trending upwards from October as it enters the pennant, and in theory, the trend should then breakout to the upside of the large pennant....as the smaller one perfectly shows too.

This was also how I was able to find the top in Jan '23.

This is how it should go but as we know, the price can be influenced by a number of events beyond anyone's control. If the price breaks down from this pennant, it will surely come all the way down to the buyzone where I have my Wave C target.

A breakout above and there is substantial upside next, into Wave 3.