Babalong
BABA - How About A Collar Trade?The green zone is long term support.
The Pitchfork projects path of price, on a Pendulum Swing basis.
The sliding parallel (white) marks the overshoot and projected support.
As we see, the steep down sloping yellow dotted resistance line was broken 5 weeks ago. But that's no reason to rush in. Why not wait for more facts?
Do we have facts now?
Yes, we have.
a) support at the sliding
b) today we see a close above the last high AND a break of the (grey horizontal) resistance.
How can we play this with low risk?
What about a Collar?
1. Buy Stock
2. Buy Put ATM
Optional:
- sell a longer dated Call (potentially limiting stock profit to finance the put)
- sell lesser Calls, to let the rest of the stock position ride, if price close ITM and calls away your (partial) position.
That's just an idea how to play it save.
Why save? What if BABA tanks?
- sell Put profit and buy more stocks to bring down the cost basis. Repeat until B/E or in profit. Additionally you can sell more Calls if they are above calculated cost basis.
Highest Risk: If the stock go to zero, then the initial investment of stocks is gone. Could it happen? Yes. High chance of happening? Don't think so.
Would love any input about this idea.
Happy weekend §8-)
Part II of BABA thesis using Wyckoff phases and volume analysisThis Idea is part II to the previously published BABA idea using Wyckoff's accumulation method. This idea includes the identification of the different Wyckoff accumulation phases and the characteristic accompanying volume analysis.
All information is on the chart!
NQdecipher
$Baba gives a new chance to enter right now Here is another chance to open a new positions in NYSE:BABA since we are in a strong demand zone and it is going to react with this price zone
Also it is making a Double bottom in this range same as the range in March
and the target for short term is as shown on the chart as well my final target for long
term is in 165 ranges
The most likely scenario on BABAbased on the price pattern has been formed in the last 3 years, the most likely scenario is what is shown by the blue line marked on the chart.
due to the last move of the price and disability to catch the Last High which is marked by the orange line, market structure hasn't changed and downtrend is still continuous.
so i'm expecting a new low and all of the mentiond fact beside the weakend downtrend show me a scenario which is marked on the chart by blue line.
BIG $BABA HnS Swing Position IdeaSupport in gray box isnt only valid support.
Generally just looking for the next shoulder to form, but this might already be a good entry area.
This would be a beautiful HnS and the breakout could take us far.
Keep a lookout for where else the shoulder may form, break gray bos and shoulder can still form lower, hard invalidation is if we get new lows below 'head'.
BABA Breaking out!! Wait for pullback !BABA has broken out and currently retesting the RESISTANCE ZONE @ 120 - 140
We can expect at least a slight pullback from here as Price action has been overly bullish the past few days + MACD is in severely overbought condition
We are expecting a soon to be GOLDEN CROSS with 50 MA crossing 200 MA
We also see a massive spike in the ADX implying a very strong ongoing trend for the BULLS
Those who do not have positions yet can look to ENTER/LONG along the:
100 - 110 USD zone
Personally I will not set stop losses here as Im expecting to hold BABA for long
Fundamentally, China domestic demand is growing massively with a massive middle class. BABA also has a huge economic moat along with Jack Ma relinquishing his position on the board and staying low, BABA's days of billion dollar fines might be over.
BABA in a falling wedge (NEW)BABA stock has been in a long-term downtrend.
We're expecting the price to continue droping as it looks like it got rejected from the downsloping resistance line on the weekly timeframe.
What we can see on the chart is a pattern called a falling wedge.
Most likely the price will revisit $60 or lower but eventually we expect the breakout in Q2 or Q3 2023.
How to trade:
Enter long position if/when we get a breakout with a volume increase.
Final target and the take profit level are shown on the chart.
Good luck
COVID Zero Softening ? $BABAI'm following $BABA since a while for now and I think that is one of the biggest companies in the sector. China has a lot a potencial but we have to achive some millestones before we breakout this endless falling we're suffering. I'm LONG $BABA from this point. Perhaps until 85$ where the POC developes.
ALIBABA downtrend finally broken It has been a really rough year for Alibaba. It was straggling to get out of that 12 months downtrend. It is finally out of downtrend. There is a small resistance around $90 zone, once we break that, $103 will come so fast. I tried to make the chart so simple so everyone can understand. You are welcome to argue but pls be respectful. Enjoy
Alibaba Analysis 30.11.2022Hello Traders,
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Options Ahead of EarningsLooking at the BABA Alibaba Group Holding options chain ahead of earnings, i would buy the $85 strike price in the money Calls with
2022-12-16 expiration date for about
$3.79 premium.
If the options turn out to be profitable Before the earnings release, i would sell at least 50%.
Looking forward to read your opinion about it.