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.
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.
Nota
More negative news out of China today. This trade is developing quite nicely.
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Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.