$BABA
Added 2023-05-02 20:32:11 +0000 UTCLost its momentum today, it was a red day across the market but we wanted $BABA to hold the 0.88 Fib, the next support level is the previous low at $79.
If this support is lost, this will likely move down to the blue line next at $71.
My plan now is to hold regardless and if I can buy under $71 even, in the buy zone, I will be very happy, I wanted this to go higher but it appears the political tension between the US and China and the Chinese intimidation of Taiwan has caused the market to be concerned.
As we know, revenue and the fair value of a company will always be the defining factor and the share price will always revert to the mean, I like this company and I like it as a hedge against a potentially further difficult time for the US market, today was another taste of how difficult things are and can be. Tomorrow is another big day for the US market and if interest rates are increased, I want to have money in a company, who's economy is the opposite to that of the US and that is China.
We are buying $NIO for the same reason we are buying $BABA, we are looking to their future. Are they undervalued now and expect higher returns in the future? Yes.
For me, $BABA is a long term hold and I am happy with their plans to break the company into 6 parts to free up its true value.
Finally, on the 4hr chart, $BABA is showing signs of reversing if we look at the RSI and MACD, we have observed this already but the selling pressure has still come but it is worth noting.
