Possible strategy for BABA
Be gentle this is my first post, and I was figuring out how to use this tool. I'm also pretty new to stock trading in general. I am attempting to follow the CAN-SLIM methodology.
BABA appears to have all of the CAN-SLIM traits, and appears to have formed a Cup with handle base. The depth of the cup is > 20% so this is a first stage base.
I'm looking for a break out with high volume with a potential buy point of $104.64. A profit goal of 20% (125.56) and a stop loss of 100.54 (-4%) or the 50 DEMA.
I did see that the 104.64 buy point was already hit, and drop below that. I'm looking for another day of high volume going through it. One thing I noticed is that the close was not towards the top of the candle, on most of the break outs I have seen the close is towards the top of the candle. I'm presuming the breakout ran out of steam that day.
There is also tightening trading with a mostly flat top, and increasing bottom, I think this will give the stock a good "pop" when it does break out.
One concern is earnings, to handle any volatility in earnings I propose if you are < 5% before earnings sell the entire position. If you are < 10% before earnings sell 1/2 position.
Ok someone tear this apart so I can learn :)
BABA appears to have all of the CAN-SLIM traits, and appears to have formed a Cup with handle base. The depth of the cup is > 20% so this is a first stage base.
I'm looking for a break out with high volume with a potential buy point of $104.64. A profit goal of 20% (125.56) and a stop loss of 100.54 (-4%) or the 50 DEMA.
I did see that the 104.64 buy point was already hit, and drop below that. I'm looking for another day of high volume going through it. One thing I noticed is that the close was not towards the top of the candle, on most of the break outs I have seen the close is towards the top of the candle. I'm presuming the breakout ran out of steam that day.
There is also tightening trading with a mostly flat top, and increasing bottom, I think this will give the stock a good "pop" when it does break out.
One concern is earnings, to handle any volatility in earnings I propose if you are < 5% before earnings sell the entire position. If you are < 10% before earnings sell 1/2 position.
Ok someone tear this apart so I can learn :)
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