BABA at All Time High: What to do now?
Hello traders and investors! Let’s study BABA today! I see great potential on some Chinese tech stocks, and BABA is a good deal for sure. But since it is trading at its ATH, how to proceed?
There are some simple strategies we can use here. First, if you are out, there’s nothing to do, but wait for a pullback. This way you’ll get a better price, and a safer trade, with a better Risk/Reward ratio.
If you are in, the situation is good and bad at the same time. It's good because it is going up, but since it is an ATH, it is natural to get a little anxious and afraid that BABA will drop, and you lose part of your profits.
But here’s the thing: Nobody will nail a trade from the bottom, to the highest price possible. Probably, you won’t nail the top here as well, and this is ok. What we can do, is to set intelligent exit strategies to protect your profits and help you to not get anxious.
One good strategy is a trailing stop at the previous candlestick’s low. If BABA loses it, then just book your profits, or half of them.
Also, this gap seen on BABA seems to be a Breakaway Gap, because it is breaking out from the previous resistance at the previous ATH, and because the volume increased a lot recently.
Now, let’s see the hourly chart:
As long BABA keeps above the 21 ema, and we don’t see a bearish pivot, things will keep very bullish in the daily chart. In fact, a bearish pivot in the hourly chart is another good exit strategy to use here.
But we could expect a pullback to the 21 ema, and this wouldn’t spoil the bull trend. If this gap is in fact a Breakaway Gap, it won’t be filled soon.
Right now, there are no technical signs to sell, neither to short nor buy. I would use the strategies above to manage my positions, and would buy at a pullback, after a good candlestick/chart pattern.
I hope these strategies helps you, and if you liked this analysis, please, support it! And follow me for more analyses and strategies.
Recent public trades (links below):
XP: +30%
AAPL: +10%
LB: +45%
UKOIL: +62%
Congratulations to all of you, my dear subs, who believed in my trading methodology, and challenged the world by being a bull! We deserve to celebrate!
BECOME A MEMBER!
Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
There are some simple strategies we can use here. First, if you are out, there’s nothing to do, but wait for a pullback. This way you’ll get a better price, and a safer trade, with a better Risk/Reward ratio.
If you are in, the situation is good and bad at the same time. It's good because it is going up, but since it is an ATH, it is natural to get a little anxious and afraid that BABA will drop, and you lose part of your profits.
But here’s the thing: Nobody will nail a trade from the bottom, to the highest price possible. Probably, you won’t nail the top here as well, and this is ok. What we can do, is to set intelligent exit strategies to protect your profits and help you to not get anxious.
One good strategy is a trailing stop at the previous candlestick’s low. If BABA loses it, then just book your profits, or half of them.
Also, this gap seen on BABA seems to be a Breakaway Gap, because it is breaking out from the previous resistance at the previous ATH, and because the volume increased a lot recently.
Now, let’s see the hourly chart:
As long BABA keeps above the 21 ema, and we don’t see a bearish pivot, things will keep very bullish in the daily chart. In fact, a bearish pivot in the hourly chart is another good exit strategy to use here.
But we could expect a pullback to the 21 ema, and this wouldn’t spoil the bull trend. If this gap is in fact a Breakaway Gap, it won’t be filled soon.
Right now, there are no technical signs to sell, neither to short nor buy. I would use the strategies above to manage my positions, and would buy at a pullback, after a good candlestick/chart pattern.
I hope these strategies helps you, and if you liked this analysis, please, support it! And follow me for more analyses and strategies.
Recent public trades (links below):
XP: +30%
AAPL: +10%
LB: +45%
UKOIL: +62%
Congratulations to all of you, my dear subs, who believed in my trading methodology, and challenged the world by being a bull! We deserve to celebrate!
BECOME A MEMBER!
Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
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