Baba short
At the end of the day probability must be your friend to be successful. Yes we are at critical support. Both here and on QQQ. Normally I wouldn’t take a short here but looking at mid October puts will give to fill the most recent gap and will help offset some risk with any mid range shenanigans. Weekly Macd. Go ahead and look at any ticker multiple bounces off the weekly Macd without a cross means a large push down is as close to inevitable as something can be. On average you get 1 MAYBE 2 crosses on the weekly Macd a year. Given the bounce a while back and the one a few weeks ago, for us to push up here would take an insane amount of volume and that volume would need to sustain for sometime for the retrace to still not occur and given this is a Chinese stock , I’d be hard pressed to say that even the biggest money is trying to accumulate something like that in this market. Target 0 fib level at the 55-60 range.
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