Minor Bearish Pullback | Andrew Aponas

١٠ ديسمبر ٢٠١٧

To be clear and not to send off too many alarms this is a bearish trade idea for the next two to four candles. I think price is going to pullback here, it could happen with one trading session or a handful. Looking at this chart I have seen that historically it will gap up with above average volume, or a volume spike and usually retrace afterwards before continuing bullish. I think the current price action is set up for a textbook pull back, price gapped up with above average volume, closed as a doji on declining overall volume. The last trading session also closed as a Doji which means the buyers are trading into resistance. Price is directly below a major pivot point which is overlapping the .236% Fibonacci level right now, in my opinion looking at this framework there is going to be a lot of bearish sentiment in the market for the current condition of price. Looking at this in a longer term picture, price is forming an Inverted Triangle chart pattern and also diverging bearish on the RSI, a correction or reversal I think is in store for BABA on the intermediate or primary level. Thank You, God Bless.

BOP over the past 2 months there has been a lot more selling going on then buying marked in the blue box, I think this may suggest the Insiders are distributing their position.
RSI I have sped up and have quite a bit going on, one the bearish divergence is marked with the transparent blue line, I have a historical pivot point also drawn through the upper half of the indicator, as well a break point signal line drawn right below it. I will use this as confirmation, if this signal line breaks as well as the pivot point my sentiment will be bullish, if the RSI fails to break these lines and pivots bearish my sentiment in turn will also be bearish.

These articles explain the most recent bullish wave, and also may suggest price will open up to start making a high in the morning before reversing, if it is going to trade into a bearish pullback.
https://finance.yahoo.com/news/risks-abound-alibaba-group-holding-183152748.html
https://finance.yahoo.com/m/abd6befd-044a-3b0d-8a8e-aaa851836c1a/alibaba-is-reportedly.html
https://finance.yahoo.com/news/alibaba-ups-ante-connected-cars-133601273.html