BABA.US will open up with a gap in the ascending direction when after a new upward trend has begun. The correction from the recent months to 50% Fibonacci on the big upward movement gives us good expectations to look for purchases here.
The fundamentals of the stock are positive following the progress of talks between the US and China. The company is expected to become the next Amazon, but even if it does not happen the expectations for the BABA.US shares are to rise, they are solid. 45 billion annual sales and 400 billion market capitalization are confirmation for positive expectations.
The price will open above the support, which combined with the breakout of the two diagonals of the downward movement is a positive signal.
SL 145.00
Alternative scenario: Returning the price under the support will activate the Flagship Flag formation, which can return the bearish sentiment.
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