Alibaba Group Holdings Ltd.Updated

BABA before Earnings

BABA is mostly bullish with multiple successful formation exits in the past. Short-term likely to correct towards 200 suggest 7 out of 10 major indicators. The stock has too much empty space at the beginning of the current triangle (marked 'X'), which now requires a second leg. Breaking out above the triangle now would form a double-top crashing the stock later on (rather unlikely to happen). For now the most "healthy" performance is a quick drop towards said target.

Note that the stock's current 'weekly' and 'monthly' suggest a larger downward move towards 170 if 200 doesn't hold. Take a look:

WEEKLY:
snapshot

MONTHLY:
snapshot

ADX:
snapshot

RSI:
snapshot

Use 199.50 as your marker for a possible further correction (if it drops below).

This post will be updated continuously when mentionable changes can be observed.


Note
UPDATE: Stock must break 226.70 today to remain bullish, else fall tomorrow as expected.
Note
UPDATE: With today's daily candle I'd recommend insuring your position. BABA could jump above 230, but retains all negative indications.
Note
UPDATE: BABA blew out ER with a 46% beat. As long as the stock doesn't 215.30 in next 3 trading days, it could jump towards ATH and beyond.
Note
UPDATE: Here are a few ways the current triangle could break out or bust:
snapshot

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