Shibaba3731
2021-07-14

$Alibaba(BABA)$ Don't catch a falling knife


Yes, $BABA has rebounded from $200 which is seen as a strong "psychological" support level. But why did it even has to test $200 in the first place? This rebound doesn't hide the fact that $BABA has been on a long term "lower highs, lower lows" down trend since Oct 2020. Given the current headwind in China and US, I wouldn't want to try my luck to catch a falling knife. It needs to break thru the 200EMA (orange line) and VWAP (purple line) to break this down trend. Good luck.

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