BABA - Is this the Bottom?

Let's examine #BABA from a weekly time frame (log scale view):

1) Respected long term channel. We now have three weekly wick up candles holding above the 164.33 level.

2) VOLUME: And this is important, we can see the volume from the weekly candle three weeks ago was HUGE. Sell volume since has been declining and we have a spinning top candle for the week ending 9/3/21. When looking for entry (which I am okay starting a position here) we want to see either the selling volume continue to decline or a buy volume candle while price holds previous low or takes out the high of previous candle.

3) We can see BABA completed a 5 wave sequence which will now become our major 1 wave. The drop in BABA is a major 2 wave correction which I want to see hold above the red dash line (minor wave 4 low - below this would be my stop loss on a weekly candle close).

The bottom green box is my buyzone where I am happy to accumulate BABA in shares or June 2023 ATM or ITM calls. Middle red box is a "trim zone" for me where I will look to eliminate as much of my cost basis as possible for a risk free trade. Based on the low two weeks ago, (if that low holds), this would be a typical bounce area for BABA before a possible retrace. This could be done in a micro wave 5 fashion, double bottom, or an S curve type pattern.

Upper green box is my major wave 3 target assuming the low is in for now on BABA.

Best of luck and hope this helps!


#BABA BABA