Alibaba’s stock price is reacting to a strong demand imbalance on the monthly timeframe as expected and shared with members of the Set and Forget online trading community. Alibaba Group stock took a few months to pull back to the strong imbalance, located around $215 per share, and it’s reacting to it very strongly.
Alibaba’s stock price in pre-market is showing higher stock prices near $270 per share. It seems that Alibaba Group stock BABA will keep on rallying even higher in the next weeks.
Chinese e-commerce giant Alibaba Group has posted strong results for the last quarter of 2020. Still, as supply and demand traders, we do not need to pay attention to these releases since most of the time prices will react to a strong imbalance even if the earnings are negative. The company was founded by Jack Ma. Alibaba saw revenues up 37% against the same quarter of 2019 to $34.2 billion.
There is a lot of profit potential for Alibaba Group stock. We expect Alibaba’s stock price to keep moving to higher grounds, around $300 and even break all-time highs in a few months during the first few months of 2021. Alibaba’s stock price forecast for 2011 is bullish.
Unfortunately, I am not long on Alibaba stock because at the time, a member of the trading community shared an article that informed me that the NYSE would delist Alibaba and other Chinese companies from the New York Stock Exchange. A few days later, they changed their mind, and I was long on other stocks. It doesn’t matter because there are plenty of trading opportunities.
This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances on Alibaba Group stock.
Trading supply and demand imbalances are ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to Alibaba Group news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why do you see positive earnings and then the underlying stock drops like a rock? Or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
Unless you are doing very short-term trading and scalping, you should not worry about fundamentals or earnings announcements.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves. This game has got a name and it’s called the waiting game. We need to wait for the correct scenarios and setups to happen patiently. And wait for the price to pull back or dip into the price levels we want to trade, in our case. These price levels are made of supply and demand imbalances.
There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock. You can also use stock options strategies to go long or short at these specific supply and demand levels. Long calls or long puts or spreads. You can even buy CFD (contracts for difference) if you are in a country where it’s allowed.
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