Long opportunity with little risk involved on $BABA

2020年12月2日

We finished a clean three wave zigzag which stopped around 123.6% fib extension. There has been lots of call flows into this name for a while and with the news about the China stocks on the board this seems like a risky play. Based on Elliot Wave theory I am long BABA and keep adding to my position as long as we stay above the 0.786% retracement zone in the C-wave. Mental stop is somewhere around 260. My target would be at least 306 which offers a great risk to reward from here.

2020年12月2日

ノート

So far so good. We are keeping the zone for now and we see some positive divergence coming on the 30m timeframe. Keeping this zone is crucial.

2020年12月3日

トレード稼働中

Well, this aged pretty well so far. Added on weakness, trimmed into strength today.

Leaving from the golden zone with a firm impulsive moves implies (to me though) that this could be the start of impulsive wave 3 which targets for 306 in the short term.

Short term scenario: we need a new cycle high in order to form 5 waves in subwave 1 of 3. Depending on where wave 5 ends, I will wait for a retracement to 0.618% retrace level. Breaking 258 = exit.
I have a few March '21 300 Calls.