BABA, BIDU, XIAOMI and prob. more Chinese tech might be good buy
Hi,
I've placed some positions in the mentioned three, as a less conservative investment for 2022.
Reasons:
Fundamental:
- The whole Chinese tech sector is beaten down since 2020, it's not excluded to fall more.
- Earnings rise well, p/e ratio could be lower but for tech it's totally ok.
Technical:
- 1.5 years down is usually "enough" :)
- Well below 100W and 200W MA
- They look like they went through a reversal recently.
- 1D chart: Bullish divergence on RSI, weakening downtrend / starting uptrend is indicated in MACD.
- 1W chart: same observations as 1D chart
- 1M chart: no completed divergence / trend change yet, but starting.
Overall I like it, entered BABA @ $123, same time the others.
Expectations (telling BABA only): Trend reversal, 30-40% growth in 2022, up to ~170-180
Worst case scenario: Downtrend continues short-mid term, next resistances: bottom of channel, $105, $85, $60.
If worst case scenario happens, I'll re-analyze and might double the position observing it a few weeks. I'm pretty sure they will come out positive this year even in worst-case.
Cheers,
Antonio
I've placed some positions in the mentioned three, as a less conservative investment for 2022.
Reasons:
Fundamental:
- The whole Chinese tech sector is beaten down since 2020, it's not excluded to fall more.
- Earnings rise well, p/e ratio could be lower but for tech it's totally ok.
Technical:
- 1.5 years down is usually "enough" :)
- Well below 100W and 200W MA
- They look like they went through a reversal recently.
- 1D chart: Bullish divergence on RSI, weakening downtrend / starting uptrend is indicated in MACD.
- 1W chart: same observations as 1D chart
- 1M chart: no completed divergence / trend change yet, but starting.
Overall I like it, entered BABA @ $123, same time the others.
Expectations (telling BABA only): Trend reversal, 30-40% growth in 2022, up to ~170-180
Worst case scenario: Downtrend continues short-mid term, next resistances: bottom of channel, $105, $85, $60.
If worst case scenario happens, I'll re-analyze and might double the position observing it a few weeks. I'm pretty sure they will come out positive this year even in worst-case.
Cheers,
Antonio
Note
So far, so good. Stable position. I'm willing to increase it in the next month or two if it proves the trend reversal path.Note
Watching if it gets another >10-15% leg down from my position. A good date to evaluate action between 01 Feb 2022 and 04 Feb 2022, as earning come out and if it gets lower during holidays, it's a possible turnaround.My worst-case scenario is ~25%-30 down from my positions, from where I think it will still rebound during the year to a good, profitable area. In the case of a >15% drop I'll double my positions in Chinese tech.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.