BABA - Could Have A Good Bounce Soon

BABA is going oversold for the first time ever on the 2 week chart.

It has capitulated 55% from the top.

In addition it is arriving at the 1.618 extension at $140.

On lower time frames there is plenty of bullish divergence.

So good chance it will bounce in the $140 area.

From there it can bounce all the way back to resistance at $212 which if price did bounce at $140 would be a 0.5 fib retracement.

This could be spoiled by a market crash, so I may only have a very small trade on and wait to short a bounce if an opportunity arrives.

Not advice

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There is often a considerable overshoot on long range fibs.

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If a hard bounce comes this is not a recovery imo, it is an automatic rally.

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I've decided I won't buy this, I'll only short it on a bounce. Patience pays well.

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BABA has hit the $140 fib target. Could be overshoot into 130s.

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Well theres that bounce right on cue at exactly the 1.618. Funny how the news doesn't see it that way. There's always some real world activity as the reason for the bounce, but it just so happens to be a ratio where so many waves complete.

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BABA looking weak here. It could be a B wave which then the C could carry it up to my target, but who knows really. This stock is garbage imo and will see 2 digits down the road. If it hits my target I go short and trade with trend.