Channel since Nov 2014 now broken down.
Objectively, the 1/BABA case looks great as a long...
If opens at current premarket level, will be below 20 DMA
If it breaks, room to rise above it as it could head towards $38.
Exit from even the most conservative channel one can draw. However, earnings on 12 Aug, massive unlock in September warrants a little caution and China volatility are still possible shadows for the long case.
Drawing trendlines is subjective, but still rangebound in my opinion. $83.70 is proving a tough resistance, while $82.00 proving to be some support. But, overall, multiple indicators (incl. MACD, RSI) showing that BABA is ready to head higher - if it can follow through.
Yesterday's candle was not confidence inspiring.
Of late, most green candles have long wicks at the top of them, suggesting the general feel is still bearish.
Opening gap lower today below channel support. China volatility pushing it lower.
Could end the day not too bad
Sitting on lower BB, needs to get above $82.50 to break out to upside
Needs to go above $84.50 to break up, but otherwise still trending downwards
20 DMA providing support. Needs to break $27.70.