$BABA island reversal pattern. Look out below!
With China's drastic growth cut and terrible net export numbers, $BABA is coming under pressure, both from internal and external consumption from growth and trade optics.
We have a beautiful Island reversal setup that is playing out as we speak. $BABA tried for a knee jerk recovery but today is failing, and this is an excellent short setup for the next leg down.
We have the yearly neutral pivot around $160, which should serve as a good first target.
I've circled in red the two gaps that compose the island reversal. This is a strong reversal pattern. The trade would be invalidated if we made a high higher than island reversal. However, given the narrative and the technical setup, this looks like a strong trade. I'm personally short.
We have a beautiful Island reversal setup that is playing out as we speak. $BABA tried for a knee jerk recovery but today is failing, and this is an excellent short setup for the next leg down.
We have the yearly neutral pivot around $160, which should serve as a good first target.
I've circled in red the two gaps that compose the island reversal. This is a strong reversal pattern. The trade would be invalidated if we made a high higher than island reversal. However, given the narrative and the technical setup, this looks like a strong trade. I'm personally short.
Kommentera:
More negative news out of China today. This trade is developing quite nicely.