Few stocks are as well positioned as BABA's stock in face of an imminent crash. First, because the price is already discounted to the levels before the last bull. Second, before the fundamentals are still quite strong. Third, and most important, because the majority of indicators are showing signs for a reversal. The vertical lines divide the price cycles according to the troughs of the Volume Osciallator. Historical analysis of these troughs show that they are coinciding with the start of a bull. We are currentlyat a trough. The OBV line is showing a wide gap above the mark price despite months of steady decline since the Chinese government started clamping down on the giant. This indicates people are still holding to their investment and that's unlikely to change with a market correction, which would only bring the price to the lower monthly Bollinger Band, which is also the POC shown.
I don't expect nearing the ATH anytime soon, but a pull back up to around 240 seems to be very likely not so far from now.
I don't expect nearing the ATH anytime soon, but a pull back up to around 240 seems to be very likely not so far from now.
