BABA LEAPS idea On the monthly and weekly charts, BABA is forming a large inverted head and shoulders pattern. It has broken a longterm down trend that began back in late January 2023. It is currently retesting the downtrend line as a support in confluence with a support level that has held price on 4 separate occasions since March 2022. It can be noted that price is also sitting at the fib golden zone on the weekly when plotting the low of the head from the H&S with the high that followed from that low. Price on the weekly is also displaying a double bottom pattern after retracing to the fib golden zone.
Trade Idea: Watch price's reaction at this level. Wait for the weekly candles to stablize and create bullish intentions by displaying candles that are making higher highs or some type of bullish pattern/confirmation. The current weekly candles are in a downtrend. Wait for the price to drop a bit more then once the price action on the weekly begins to create bullish trending candles, plan your entry for a LEAPS play dating at least a year or more out.
Targets: 96.97, 107.72, 114.04, 121.33
Stop: Break and Hold below 77.76-80.09
