A tax free spin off at the end of the year to YHOO shareholders as a part of a separate company. Waiting for IRS ruling on the deal.
BABA
- Thread starter recession2016
- Start date
Looks like your assessment is correct. BABA is at $83 and change. Is it time to get back in or should I wait for the 80/82?
BABA is going lower and lower with regularity. So I would rather lower my expectations : 78/80 dollars. 85 was a short term support ? Lasted only 4 days...
If you still want to enter, you would better wait for a plunge at 80 dollars and watch if 80 holds.
Yes ? => Buy
If not (77 ? 78 ? 79 dollars?), buy above 80 dollars.
GL with your trades.
CM
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The lower gap (from the last earnings report) has now filled. Watch and see if buyers step up in this area, they have a second chance entry from the last earnings.
Well, you made good choice. Today, BABA is below 78 dollars.
Should you buy it now? I don't think so, because you got zero divergence.
RSI shows lower lows (see graph): trend is still down. Only a strong reaction (close above 80 dollars) could (eventually) stop the drain.
CM
IMO, yes and no...Actually I did get in. Probably too soon?
Yes because until you don't get a close above 80, BABA could go lower (76? 75?74?). Above 80, probabilities would be higher for a strong rebound.
No because you could have bought it before @ 90... at least, you waited for a better price.
And perfect timing is impossible.
On a short term basis, I am still negative because yesterday was an awful black marubozu (open near highs, close near lows).
If BABA doesn't break 81.19 dollars, some more downside to come....
.Anyway, one advice... don't average down !
CM