Chinastocks
Is this King of Tech a Prince of Thieves? | ALIBABA ($BABA)🗺️ Despite strong earnings for Alibaba and an epic recovery since the COVID dump, BABA is in real danger due to new legislation in the US that essentially targets Chinese companies. The legislation won't necessarily lead to anything like a BABA delisting, but fear, uncertainty, and doubt (better known as FUD) surrounding the news makes it hard to see new all time highs for this Chinese giant. Given the uncertainty, what we have now is more of a sell / no trade zone than a clear long or short.
While we typically short downtrends on retests of bearish orderblocks and bearish S/R levels (maroon lines), we have no clear trade at the moment. So instead let's look at some levels of interest.
Below we have S1 - S3 for support. S1 would work well for a dead cat bounce, because it would appear to keep the bullish structure of the trend in place. Meanwhile, any level on the trend line starts to erode the uptrend and is likely to only act as gradual support on the way down.
If the bulls can somehow keep BABA afloat, even if just temporarily, resistance levels above include a retest of R1 and the R2 swing highs, both of which could set us up for a nice short.
Resource: www.bbc.com + www.marketwatch.com
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LUCKIN COFFEE ($LK): The Trend Said to Sell Way Before Delisting✨ Drop a comment asking for an update, we do NEW setups every day! ✨
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Luckin Coffee looks like it is going to zero. Even if it does recover, US investors likely won't benefit since it is being delisted from the NASDAQ. Further, even if it wasn't being delisted, it probably would be soon given the new legislation being past which will result in stocks like this being delisted. Here is the thing though, you didn't need to know any of this to know LK was a strong sell well before the drop. Any decent trend indicator would have told you to get out of LK. Not only that, those same indicators would have had you potentially short into that big drop. Let's take a look at how one would have faired being strength and selling weakness on LK to get a sense of why it is so important to trade with the trend.
Resource: thecolgatemaroonnews.com + www.foxbusiness.com
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1. With our Fractal Trend indicator we ONLY take long setups when the trend is bullish (Aqua bar color) and ONLY take short setups when the trend is bearish (Maroon bar color).
2. Since the only options during a downtrend are to take short positions or sit in cash, we can see that traders and investors using Fractal Trend would have either been in cash or have been short for the big drop.
3. Likewise, since only long positions are allowed in an uptrend, traders and investors would have had a chance to capture a portion of the upside when Luckin did run.
4. With the last two points in mind, you can see that adding another indicator can greatly increase our ability to profit during both up and downtrends. For example on the chart, we are using S/R levels and orderblocks to find entries and exits for trades along the trend.
5. As you can see on our chart, not every pure trend based play (one opened at the color change and closed at the next) was profitable, and for sure not every more tactical trade with the S/R levels and blocks was either, but importantly the profitable plays and the money saved helped one to profit, and more importantly protect capital, far beyond what a buy and hold investor would have
Long story short, LK is a great example of the power of trend trading and shows the value of buying strength and selling weakness as compared to buy and hold.
$OCFT can rise in the next daysContextual immersion trading strategy idea.
OneConnect Financial Technology Co., Ltd. operates as a technology-as-a-service platform for financial institutions in the People's Republic of China.
The share price rose after good earnings. I see some preconditions the share price will continue growing.
The demand for shares of the company still looks higher than the supply.
These and other conditions can cause a rise in the share price in the next days.
So I opened a long position from $15,05;
stop-loss — $13,85.
Information about take-profits will be later.
Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision.
Always do your own analysis before making deals. When you use any materials, do not rely on blind trust.
You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy.
If you like my content, you can subscribe to the news and receive my fresh ideas.
Thanks for being with me!
$GSX can fall in the next daysContextual immersion trading strategy idea.
GSX Techedu Inc., a technology-driven education company, provides online K-12 after-school tutoring services in the People's Republic of China.
The share price fell after bad earnings. It looks like it will continue falling. Also Citron says $GSX should fall.
The demand for shares of the company still looks lower than the supply.
So I opened a short position from $35,43;
Information about stop-loss and take-profits will be later.
Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision.
Always do your own analysis before making deals. When you use any materials, do not rely on blind trust.
You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy.
If you like my content, you can subscribe to the news and receive my fresh ideas.
Thanks for being with me!
NEXT WEEK CRUCIAL - LK LUCKIN COFFEE - DAILY - MY IDEASWe have observed significant changes in the daily trend of the LK Luckin Coffee price.
Last week's ends with a huge gap formation accompanied with a nice wick formation .
We got all signals of an increase in probability to see the market going down further furing the first days of next week sessions.
Former support lines forms now a strong resistance area above the actual price.
Chances of short entries from Monday are there, if the market follow the signal given with this big long wick created on between Wednesday and Thursday.
Alibaba - Trading ChannelPrice strongly rebounded Monday on the lower end of the pitchfork, validating the upward trading channel.
Alibaba: False Breakdown as Earnings ApproachOne of the striking things about this earnings season has been the broad strength across technology and e-commerce. Whether you’re looking at Shopify , Twilio or PayPal , one company after another has rallied despite the coronavirus pandemic.
And now one of the biggest names of all, Alibaba, has some interesting patterns as its quarterly numbers approach.
Two things stand out on BABA’s chart. First is the $188-190 support zone. That area was first important back in November 2017, then again in March-April 2019.
The bears tried to take a stab at that same level last week, but were stopped dead in their tracks the next day.
This level is also meaningful as a confluence area with the rising 200-day simple moving average (SMA).
Speaking of moving averages, BABA had a false breakdown under its 50-day SMA a few sessions ago. Its rebound back above that level today could be another signal for the bears to back off.
The next earnings date hasn't been officially announced yet, but TradingView estimates it will be on May 11.
Wait for confirmation before entry long on BAIDUSupport :96.51
Resistance : 105.14
The market is ranging at the moment , we are observing the volumes because at the end of the day BAIDU is always dynamic.
If the candlestick formation is confirmed to be a pullback , thanks to the volumes, it will announce a coming increasing trend .
If the market strongly breaks the support line or the resistance line : The shape of the market will change. Follow the trend because they are possibility of seeing the market moving way from the actual range.
Beware:
BAIDU can open in the morning with a significant price change.
$CJJD can rise in the next daysContextual immersion trading strategy idea.
China Jo-Jo Drugstores, Inc., together with its subsidiaries, operates as a retailer and distributor of pharmaceutical and other healthcare products in the People's Republic of China.
The demand for shares of the company looks higher than the supply.
These and other conditions can cause a rise in the share price in the next days.
So I opened a long position from $2,48;
stop-loss — $2,40.
Information about take-profits will be later.
Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision.
Always do your own analysis before making deals. When you use any materials, do not rely on blind trust.
You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy.
If you like my content, you can subscribe to the news and receive my fresh ideas.
Thanks for being with me!
Long on ALibaba..... Possible Swing Trade (might reach 230) Price has been in an uptrend
Price has retraced and respected the 38.2 fib creating a double bottom and possibly completing the right shoudler of a H&S Pattern
price has also found support/respected the lower trend line........
Price also found support at the 20 MA average (NOT SHOWN ON HERE)
This stock is overall bullish, but some negative light has been shed around one of the executives, but I don't think it will have a huge negative affect on the "value" of stock price.
Could be a possible swing trade.... Earnigs are scheduled for MAY 13
$TEDU can rise in the next daysContextual immersion trading strategy idea.
Tarena International provides professional education services through full-time and part-time classes in the People's Republic of China.
On 24 April the company announced that it has filed its annual report on Form 20-F for the fiscal year ended December 31, 2018 — finance.yahoo.com
The demand for shares of the company looks higher than the supply.
These and other conditions can cause a rise in the share price in the next days.
So I opened a long position from $4,64;
stop-loss — $4,34.
Information about take-profits will be later.
Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision.
Always do your own analysis before making deals. When you use any materials, do not rely on blind trust.
You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy.
If you like my content, you can subscribe to the news and receive my fresh ideas.
Thanks for being with me!
JD.com: Is This Chinese E-Merchant Leaving the Station?JD.com is the No. 2 Chinese tech stock tradable in the U.S. behind Alibaba (by market cap). It broke out to a new 52-week high just a week ago, followed by a quick pullback. Buyers defended its price around $42, which marked weekly closes several times since January. This same level now provides a potential risk-management and entry zone.
JD’s has had strong earnings, fighting its way back from a steep pullback in 2018. It also stands to benefit from the general influx of capital into Chinese equities after global indexes were changed last year.
JD has made a series of incrementally higher lows since June 2019, while remaining above its 200-day simple moving average. It managed this feat even at the most bearish moments of the coronavirus correction -- unlike almost every other stock during the crisis.
industrial and commercial bank of china going short industrial and commercial bank of china.. short for the next weeks...
-but if the price goes up and breaks the mov av 200..thas means the trend is strong..and the nearest resistance is level 6.06
It is a weekly chart so will take a long time to see those scenarios
Tesla’s Flying. Don’t Forget About NioTesla has been on fire since bouncing at its 200-day simple moving average (SMA) four weeks ago. It’s had a series of upgrades, including Credit Suisse today. The surge is pretty amazing when you consider it’s happened despite a collapse of gasoline prices. This shows that the electric-car story is very much intact.
But TSLA’s not the only show in town. Its smaller Chinese peer, Nio , has also been parked at its 200-day SMA and is just now showing signs of acceleration.
The weekly chart just had three consecutive inside candles, which have revolved to the upside. This is important because NIO is extremely volatile. It had a huge surge in late 2019, followed by a big drop. That trio of inside candles suggests it’s calmed down and may be ready to start trending again. Today it’s breaking the highest of those three candles around $3.07.
Fundamentally, NIO has had issues with coronavirus impacting demand and production. But more recently (April 7) the company reported a doubling of March deliveries.
Flush It AlreadyChinese stock markets still open today. Lots of indecision at this level but looks bearish to me. Trade the breakout either way.
Confusing Head&Shoulders pattern for MOMO and 50% gain potentialIn current context it is very hard to make prediction and especially in Chinese stocks. MOMO has recently completed H&S pattern which is usually regarded as bearish chart pattern. Stock is very volatile last 3 weeks and it drops to its strong support at around 22-23. Situation with COVID-19 fuels uncertainty and fear into global markets sentiment and can push MOMO even lower at this setup. MOMO has very good and stable growth and people in China like using dating and video services provided by company. I would even think current context may increase usage of those services. COVID-19 seems to be currently more-less stabilised in China, not in the rest of the world however.
Most important day for MOMO is 19.march 2020 when Q4 and full year earnings will be announced. EPS Q4 forecast is 0.64$ which is roughly 40% higher in comparison to Q4 2019 EPS. I believe in strong results which may be able to yield 50% gain in price from 22$ to 33$ in few months.
China problems, Central Banks & euro riseThis week begins to give a first idea of the economic consequences of the epidemic (so far in the context of China). We are talking about the manufacturing PMI index for China, which fell to 35.7 in February (compared to 50 in January). The non-manufacturing index came out even worse, showing a value of 29.6 (the lowest in history). Recall that any value below 50 indicates a decrease in economic activity. And this is only the first swallow. Then there will be new indicators, and each of them will plunge financial markets into an ever greater depression, at least for some time.
Meanwhile, in China itself, the epidemic continues to decline rapidly. In Wuhan (the epicenter of the epidemic), they even began to close the first temporary hospitals due to the lack of patients. But the relay race in China is confidently intercepted by the world as a whole. South Korea, Italy, Iran - current epicenters, which are also not localized, but, on the contrary, spread the virus to other countries. If we draw an analogy with China, then at best for the next month we will find exclusively disappointing news. So you should not count on something good from March.
Accordingly, the outcome from risky assets is likely to continue, respectively, gold and other safe-haven assets will find fundamental support. This week we will continue to use the bundle of buying gold - buying USDJPY as a promising medium-term position. In our opinion, the strengthening of the yen, if it continues, will be limited, but the opportunities for gold growth look much more extensive in this regard. Our disbelief in the significant strengthening of the yen is due to the fact that Japan is experiencing serious economic difficulties and traditionally one of the components of the equation to solve them was the devaluation of the yen, so the Bank of Japan is either around 107 or about 105, but most likely it will intervene and prevent the yen from strengthening.
In general, central banks are again in the spotlight. Everyone expects salvation from them. As it was during the crisis of 2007-2009. So far, they live up to expectations, since all key central banks have noted rather aggressive statements about their readiness to act.
Markets traditionally focus on the Fed. This is mainly due to the current difficulties of the dollar and the frank success of the EURUSD pair. With each new hundred growth points of EURUSD, our desire to sell a pair grows stronger, as does our desire to increase transaction volumes for sale.
Part of the dollar’s problems lies in the plane of the presidential election. We try to minimize the analysis of the political plane, focusing on the economy. But today is the so-called Super Tuesday. The day when 1344 of the 1991 Democratic Party delegates cast their ballots for a particular candidate. So far, Sanders is the undisputed leader (probability of victory = 57%), but Biden still has chances (probability of victory = 31%). So the day for the US political sphere is very significant.
The pound was under pressure yesterday due to the negotiation process between the UK and the EU on a trade agreement. There is already a familiar game of tug of war and trade for the best conditions, tied to mutual threats. As in the case of Brexit, we prefer to see not the current noise, but the perspective. And it is such that the parties are likely to agree in one form or another.
Accordingly, the pound will receive its positive sooner or later. So in the medium term, we do not see any problems for medium-term purchases of the British pound. Rather, on the contrary, we see good shopping opportunities. In current conditions, sales of the EURGBP pair seem ideal to us.
China is slowing down, the US homes sales are growingYesterday was notable for the fact that for the first time in an epidemic, the number of new cases in China was lower than in the rest of the world. On the one hand, this indicates a reduction in the epidemic in China, and on the other, the continuation of the deterioration of the situation in the world. Since the situation with the epidemic in China is improving quite rapidly, we can begin to summarize its preliminary results. And although it’s too early to talk about specifics, some estimates can be obtained already here and now.
These are the so-called early response indicators. For example, Bloomberg calculates 8 early response indicators for China. So 5 out of 8 in February decreased. But this is not the worst. The February indicators of business confidence fell to the lowest values in the history of observations. Business can be understood: the sales of new cars and real estate in China fell by more than 90%.
Bloomberg data is also confirmed by a monthly study of the health of small and medium enterprises in China. The results are record low in the history of such studies.
As for the more classical metrics, it is expected that China's GDP growth will decline to the lowest levels since 1990. Goldman Sachs, for example, expects China's GDP growth in the first quarter by only 2.5%.
A sharp slowdown in the economy is frightening not only by the fact of the slowdown but also by the problems that it carries: rising unemployment, increasing bad debts, increasing bankruptcies, falling financial results of companies, decreasing domestic demand, etc.
Speaking of official statistics, the first signals will appear on February 29, when the February PMI for China will be published. As expected, it will fall to the lowest levels since the global financial crisis (while some experts predict even lower values).
Yesterday's data on sales of new homes in the USA looked rather provocative against this background: in January they grew by +7.9% to 764,000 with a forecast of +3.5% to 718,000. However, we will see what will happen there in February, especially in light of the Center’s warning the United States Disease Control and Prevention Regarding the threat of a possible spread of the virus throughout the United States.
In general, the situation continues to be tense and for any positive, whether it is a decrease in the number of patients or the development of a vaccine, there is a negative right there (problems in the economy of China and the world, the spread of the epidemic, sales on stock markets, etc.). Accordingly, we do not see any reason to radically change anything in the trading plan.
So today we are looking for points for buying gold (but we are careful - we buy on the slopes with mandatory stops), we sell oil, we sell EURUSD, we buy GBPUSD, we sell USDJPY with small stops.
