BABA - It's getting hotter
BABA has broken through the major resistance level of 144/sh, and it seems that next week it might touch the next resistance level at 136/sh.
There should be quite many people who entered the market at the level of 160-170/sh, while surely there also enough people who entered the stock at much higher levels, and now might be panicking.
The lower it gets, the better it is eventually, because BABA has no debts and with nearly 1B of users, as one of major representatives of Chinese market, cannot just go bankrupt.
Considering mentioned above, those who entered the stock too high, will need to compensate their losses, by acquiring even more stocks, to balance the average purchase price.
The major question now is, at which level shall we expect to enter the compensating portion - at 140$ or will it eventually get as low as 136$ or even 125$.
Please share your ideas in comments.
There should be quite many people who entered the market at the level of 160-170/sh, while surely there also enough people who entered the stock at much higher levels, and now might be panicking.
The lower it gets, the better it is eventually, because BABA has no debts and with nearly 1B of users, as one of major representatives of Chinese market, cannot just go bankrupt.
Considering mentioned above, those who entered the stock too high, will need to compensate their losses, by acquiring even more stocks, to balance the average purchase price.
The major question now is, at which level shall we expect to enter the compensating portion - at 140$ or will it eventually get as low as 136$ or even 125$.
Please share your ideas in comments.
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