Alibaba Group Holding Limited, through its subsidiaries, provides online and mobile commerce businesses in the People’s Republic of China and internationally. It operates in four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others.
Let’s take a look at Alibaba Group (NYSE: BABA) monthly timeframe with wearing our supply and demand glasses. Remember this is a long term analysis, you will be able to trade smaller timeframes on the way up or on the way down when it corrects.
Alibaba Group (NYSE: BABA) is one of the few companies that was not much affected by the crash of the market in March 2020. And this fact makes it particularly interesting to analyze the future prospects of the company.
Alibaba Group (NYSE: BABA) monthly timeframe is in a clear uptrend with new imbalances being created and respected. We were looking to go long long term at the first demand imbalance at the bottom of the chart around $110 per share but it failed short of retracing to it last January 2019. It’s a pity because it would have been a great opportunity. If we can say that the peak of the COVID-19 pandemic has passed, that is only in the case of China.
Alibaba Group (NYSE: BABA) continued to rally and ended up creating another imbalance last October 2019 around $173 where we were expecting price to pullback and react strongly despite the fear caused by COVID-19 coronavirus effect. Take a look at Alibaba Group (NYSE: BABA) analysis and forecast in the screenshot below.
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.
Trading supply and demand imbalances is 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 the 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 is it that 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 gaining control.
Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements Alibaba Group (NYSE: BABA).
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 patiently wait for the correct scenarios and setups to happen and wait for price to pullback or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
If you want to learn how to trade using our supply and demand trading strategy, join our supply and demand stock trading course.
There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use 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 Alibaba Group (NYSE: BABA) CFD (contracts for difference) if you are in a country where it’s allowed.
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