Alibaba Accumulation Good day/night everyone, here we have possible accumulation on alibaba stock. Price broke long-term trendline and became oversold in march with increasing volume, furthermore on secondry test in phase A with dropping supply couldn't broke SC(support). The next bullish move in phase B started with strong demand and good spread and broke resistance.
In current bearish move that we close to the resistance with lowered volume can be the secondry test in phase B that can start an bullish move or a powerful and quick shakeout that wants to trap sellers and move up and at last my idea is that we are in a spring in phase C of Wyckoff accumulation.
Another important point is the fundamental analysis on this stock that correlate with technical, based on my valuation this company is undervalued with real value around 110$.
AHLA trade ideas
The most important pattern in stocks This is a remake of a previous video about a very important chart pattern seen on every time frame - from multi decade rallies to intraday trading charts.
Learning and identifying this pattern is important to avoid getting caught on the wrong end of a market cycle.
BABA - ready for a riseAs RSI indicator is close to 30, we can expect that the price will decrease a little bit more to reach the support level , then we expect a trend reversal , so we suggest to take a long position.
Entry: when the price retest the support level;
Target: at the resistance level;
Stop loss: as in the chart (6,22%).
Might come close to the 81 mark (Update)28 September - BABA might hit 81 before turning around if the overall sentiment stays bearish .
3 October - BABA hit almost exactly at 81 and then moved down. Appears to still be somewhat bearish and still testing the 81 resistance however if it stays above the top trend line that might become the new temporary support support until one of the other two horizontal lines are consistently broken. Look to see overall short trend before directional bias is assumed.
Long Term InvestmentI've been watching China stocks for years, I think Alibaba is a good value here.
Check out that weekly chart, prices no longer able to touch the bottom of the range. I'll be buying the close of this weeks candle if it stays looking like this.
This Friday marks the close of the day, week, month, and quarter. So some big technical closes coming up.
BABA AnalysisPrice did not play out as analyzed last week. The bullish POI at 90.17 has been invalidated and the order flow has changed again. Right now, the daily timeframe is continuing its downtrend. I'm expecting price to do a bullish retracement into the bearish POI at 85.00 before continuing lower.
BABA Long Swing IdeaBABA has returned to the demand zone within a large range measured between $73.28 and $126.27. It is currently completing a price consolidation within a larger falling wedge at area as well. This is great area to start averaging in a longterm position in addition to the trade idea presented below. Ideally I want to enter trade when stock price drops between $74 and $77. If not, I may wait for an official uptrend to begin, creating a higher high and break & retest of the $86-$88 zone.
Trade Idea: Options (Call Contracts)
***$100 Call Strike - Expiration 12/16/22***
Premium = 2.68-2.77 (Discounted price of the stock per share offered within a 100 share contract) ($268 to $277 per contract)
Volume = 862 (Number of contracts currently traded)
Open Interest = 20k+ (Number of Contracts currently held)
Theta = -$3.79 (Dollar amount of premium loss per day)
Delta = +$24 (Dollar amount of premium gained or loss per dollar change of the underlying stock)
***105 Call Strike - Expiration 12/16/22***
Premium = 1.94-2.02 (Discounted price of the stock per share offered within a 100 share contract) ($194 to $202 per contract)
Volume = 101 (Number of contracts currently traded)
Open Interest = 12k+ (Number of Contracts currently held)
Theta = -$3.30 (Dollar amount of premium loss per day)
Delta = +$19 (Dollar amount of premium gained or loss per dollar change of the underlying stock)
***110 Call Strike - Expiration 12/16/22***
Premium = 1.43-1.50 (Discounted price of the stock per share offered within a 100 share contract) ($143 to $150 per contract)
Volume = 2.2k (Number of contracts currently traded)
Open Interest = 13k+ (Number of Contracts currently held)
Theta = -$2.83 (Dollar amount of premium loss per day)
Delta = +$15 (Dollar amount of premium gained or loss per dollar change of the underlying stock)
Stop Loss = Stock Price Close below 73.29 (or Price hit $70)
Baba So I’ve been charting baba adding to it any time it hit 87$ support. We’ll this large symetrical trinagle idea has now been broken and daily candle below. On smaller time frames we came back up and backtest as reistance cureently. I am not enjoying seeing this price action which leads me to be alive this is a confirmed breakdown occurring. This can show us a larger move down could be gearing up. We need to keep a close eye on 88$ level but I am closing 75% my postion I have been adding to lower my risk here.
BABA AnalysisPrice did not play out as expected last week. I was expecting price to bounce off the bullish POI at 91.93. However, note that price is still well within the main bullish POI at 90.17 where price could mitigate and rally from here, in confluence with filling the fair value gap at 86.73.
My biggest mistake in tradingHey all,
Nobody is perfect in trading, and lessons can often be costly. I started trading in the summer of 2020, and I have learned absolute boatloads from both being right and wrong since. I'm here to share with you the biggest mistake I have ever made in trading, and what I took from it. When Chinese stocks first started crashing on news of government restrictions & such, I looked to the opinions of others for advice; I recall watching YouTube videos from people, such as Charlie Munger, discussing why they were buying the dip or sizing up on the dip. I ended up trusting these people more than myself for all the reasons they described, and simply threw my money at Chinese stocks that seemed significantly off their highs while U.S. stocks lingered at ATH's.
This didn't work, and here's what I learned from it:
U.S. stocks are much more predictable than Chinese stocks- Chinese stocks seem to trade very little on fundamentals, and seem to be driven more by pure emotions than any other singular factor. These names will always trade at a discount as long as the U.S. remains the powerhouse economy of the world as Chinese markets are not the markets investors will flock to in times of uncertainty and fear.
Markets move together- as I said, Chinese stocks were the first to fall. Instead of seeing Chinese stocks' rapid descent as a future warning sign for U.S. markets, I simply assumed that Chinese stocks were the ones being irrational and were due to follow the U.S. markets back to all-time-highs. This clearly didn't happen. Instead, Chinese markets fell further, and now U.S. stocks are following suit.
Foreign markets follow the U.S. market- There have been many points on the charts where Chinese stocks seemed to be accumulating. None of these worked, largely because the U.S. markets have yet to accumulate. I don't believe foreign markets will begin uptrends until U.S. equities begin trending up.
Develop a macro thesis, and position accordingly- Since I started trading, I believed that we were in a bubble and were due to crash; I developed this thesis through a bunch of YouTube and looking back at history & charts. This presents a question- why was I buying the dip in Chinese equities if I thought markets were going to CRASH? It doesn't really make sense now, does it?
Trend is your friend 'til the end- the most profitable skill in the stock market is understanding when trend has reversed, or identifying if the trend is still intact. While you can bet against trend(I was doing it back in June prepping for a bounce), you should be extraordinarily careful as all the factors are working against you. Chinese stocks reversed in February of 2021, and have been in a downtrend since. Why buy the dip when you can short the rally?
Cut losses when you are wrong- Buying the dip on Chinese tech was my most expensive lesson; it could have been double the trouble if I didn't cut losses. When you are wrong, be prepared to admit it, and be prepared to cut losses when it is the case. A cut can become an infected wound if left untreated. I'm not encouraging panic- I am simply advocating that you formulate a plan for if trades go awry.
Don't follow the word of others- This is somewhat ironic as I post my ideas for others to see on TradingView and am working to create a hedge fund, but it is important to understand what I am saying here. Many people lack transparency when it comes to losses, and are too prideful to admit when they were wrong(reference GameofTrades on YouTube- the YouTuber that largely crafted my bearish thesis, but who is still desperately bullish). I am not against using the ideas of others, but you shouldn't blindly trust the word of others. The goal of trading should be to be consistently profitable and to be able to accomplish this feat on your own. If you trust other people more than your money more than yourself, I am of the opinion that you should entrust those people with your money whether it be a hedge fund, an ETF like Berkshire Hathaway, or even a mutual fund. Why put all the effort necessary into trading if you are going to follow their trades anyway?
Baba A lot of this market is clinging at support. Support zones are the scariest places to buy up. Why? Becuase emotionally you tell yourself it’s going lower, this is going to crash blah blah blah but when markets are ripping green you have an easy time to buy Becuase “oh it’s going to go without me !” Support here on baba yes it’s testing it now many times but it’s showing it’s very strong support. Doesn’t mean it can’t break and drop fast AF but that’s what stoploss is for. I’m still buying this 87 area. I have been for a month or so now. Every time we reach 87.70/88 area inn buying. Good luck