Alibaba : Ongoing Reversal

Alibaba Group Holding (BABA) – Aug 3,2017 – USD 153,32

 

Chart Here

 

2017 strong move from USD 85 to USD 160 is overdone and reversing as witnessed by Price momentum divergence.

Long term trend is intact as long as BABA stock price does not cross trough USD 110 (2016 +trend an 200D MA).

Buy in the USD 115-125 zone, i.e Blue lines on chart : At USD 125 May gap would be closed and USD 115 matches with long term trend and 200 days MA. Buy zone is 25% lower than USd 160 top which might look irrealistic . Actually it is not considering the 3 top to bottom moves since BABA was first quoted in NY in 2014 : -50% in 2014/15 , -30% in 2015/16 and -22% in 2016.