last year, nov - dec, the MACD formed a double bearish divergence, as price made higher highs, but momentum did not confirm. this was followed by a nasty big red candlestick. the exact opposite has occurred recently. the MACD has formed a double bullish divergence over the last 2 months. look for a big white candlestick this week. maybe a re-test of the 200 day avg, which is starting to flatten out. short interest is almost 13%. shorts are most likely on the wrong side of this trade now
weak hands bail early, then BABA closes north of $85. $95 - $98 before earnings. then a big gap either way. but price is heading to that range before earnings. it will start with tomorrow's bullish reversal
this is what will happen. smart shorts will use this gap down to cover. a lot of retail traders will sell their long positions and try to short BABA on this news this morning. they will get their face ripped off. I will be buying in the money calls at the open. BABA market cap should be higher than AMZN
the trend has most likely changed
everyone on twitter is #$%$, and are locking in losses here. throwing their hands in the air. I am buying this morning, and will add if she gets weaker
there is a unique chart pattern that has developed, and will soon be complete. We've got a very large island reversal in the making on the daily chart. this gap down, followed by a trading range, disguised as a bear flag, will resolve itself with a very large gap higher. maybe on the YHOO earnings, or some completely different news. I expect $98 next 2 weeks. I am accumulating May monthly $82.50 calls
institutions are scooping up cheap shares here, as retailers are selling and trying to short BABA. huge upside surprise on earnings imo. I will buy more on any weakness
10 mins after I wrote this, BABA spiked to $85.12 on a 6,400 share order after hours
a bear trap was set today. price is oscillating around the 50 day sma. next is the 100 day sma. I added calls again today.
robots that care for the elderly and wheelchairs that avoid obstacles. manufacturing deals in Japan and china. heavily shorted, this sucker will fly
anybody that is comfortable reading charts, plug in the MACD histogram settings of 65,90,12. these are martin pring's settings that identify longer term changes in trend. BABA got the bullish crossover today using those settings. relative strength index making higher highs, higher lows, now comfortable above 50.
shorter term MACD settings of 5,9,2 used by the guys at GrokTrade got a bullish shift today, with the MACD and signal line already above 0, with no bearish divergence present yet. signs point to a major move higher tomorrow.
200 simple moving average has flattened on the 2 hr chart. the bears are in big trouble here.
get on the right side of this trade folks. time to cover
I have nailed AMBA, MBLY, GPRO trades in a row for huge gains. BABA is next. or short it if you'd like, throw more fuel on the fire
the MACD on the daily chart has finally crossed above the 0 line today. it crossed below 0 on Oct. 28th, providing the sell signal. it has not given a buy signal since that date, until today.
also, what has happened today, the longer term MACD setting, used my Martin Pring, of 65-90-12 parameters just got the bullish crossover today. this is also a technical buy signal
price is also above the 50 day moving average today.
shorts must cover, price is not heading back down. the 100 day moving average is at $54, and will be tested soon.
long term entry signal issued tomorrow on the bullish MACD crossover using this setting. bears have 1.25 hrs to cover. tomorrow, the neckline of the inverse head and shoulders bottom will be broken. it will not be easy to cover tomorrow and friday
wave 3 is underway. ultimately this wave gets to $51 Friday or monday