Hello everyone. Today Lets take a look at Alibaba 1W Chart. What do we see?
1. First of all, currently we are in descending channel , there is no rally that changes the behaviour (from bearish to bullish ) yet. Thats a fact.
2. Recently we saw good 1w bar with big massive spread and climactic volume . What does it mean? This might be a zone where Composite Operators will be accumulating the stock. Also that doesnt mean that we will see bigger prices immiediately because of climactic action and lack of deep tests of this bar - points of fear (a lot of weak hands heared on news, from different public traders that "we have found bottom, lets buy that!")
3. Currently we are waiting for some tests of this bar. No one can tell you where we will found 100% stopping action and support of next accumulation (at which level), we just might predict that. So our first interesting zone to stop downmove is 104-105$ (0.382 fibonacci zone), second is 99-100% (0.5 fibonacci zone), third is 94-95 (0.618 zone). But we should pay more attention to lower timeframes in order to claim the end of local bearish reaction (1d, 4h timeframes). If we see shortening of thrust on 1d chart, lack of supply, big demand tales and good bullish bar with big spread on low demand volume (not climactic) after those this is a right time to try long! and start accumulating with CO in potential phase B. But accumulation might be very long! So you must not be aggessive and divide your pose into parts and have multiple POE to reduce your risk.
Thank you for reading, write your thoughts down in comment section below.
1. First of all, currently we are in descending channel , there is no rally that changes the behaviour (from bearish to bullish ) yet. Thats a fact.
2. Recently we saw good 1w bar with big massive spread and climactic volume . What does it mean? This might be a zone where Composite Operators will be accumulating the stock. Also that doesnt mean that we will see bigger prices immiediately because of climactic action and lack of deep tests of this bar - points of fear (a lot of weak hands heared on news, from different public traders that "we have found bottom, lets buy that!")
3. Currently we are waiting for some tests of this bar. No one can tell you where we will found 100% stopping action and support of next accumulation (at which level), we just might predict that. So our first interesting zone to stop downmove is 104-105$ (0.382 fibonacci zone), second is 99-100% (0.5 fibonacci zone), third is 94-95 (0.618 zone). But we should pay more attention to lower timeframes in order to claim the end of local bearish reaction (1d, 4h timeframes). If we see shortening of thrust on 1d chart, lack of supply, big demand tales and good bullish bar with big spread on low demand volume (not climactic) after those this is a right time to try long! and start accumulating with CO in potential phase B. But accumulation might be very long! So you must not be aggessive and divide your pose into parts and have multiple POE to reduce your risk.
Thank you for reading, write your thoughts down in comment section below.