ALIBABA @ Basic Scenario since IPO

18 בספט׳ 2016

The Trading Zone between 99.70 & 89.85 is the mainly indictaor if you want, cause it´s based on the 1st trading day (after the IPO). The relative wide trading range on 1st trading day we can use - even between 99.70 & 89.95 - as a basic long/short setup with a price target for new alltime highs/lows.

And if you want to go deeper, you can use also the trading range in the trading range - between 97.68 & 91.97. You can see that while start of 2015 a gap was created and the share falls into new all time lows until round about 56 in October`15. And after that, the shares turned around even into both trading ranges back - with a gap (under) - and are trading meanwhile above 99.70.

Interesting is, in my opinion the fact while the broad S&P 500 Index was bearsih while the last 10 days, ALIBABA shares even traded above the broad trading box. Which indicates me relative strength. So, from this point of view, new all tume highs into 2017 are only a time of question. Cause the fundamental data, like the P/E Ratio for 2017 is with 30 much cheaper as AMAZON for example (with round about 47), if i am not wrong ...

So all in all lower prices, above the trading range (99.70), in the trading range (97.68), are buying trading capabilities even into new alltime prices into 2017 at least.

Take care
& analyzed it again
- it`s always your choice ...

Best regards
4XSetUps