BABA may have bottomed

In my last post, I mentioned that BABA may be heading towards 200MA, and there is strong support below 250. It turns out the support is at 252 (Orange line), which we have tested twice already. 252 is also the center of the previous base in Jul. In addition, the 200MA is catching up, now at 244. So I think it's getting harder and harder for BABA to dive further. So we may be looking at a W bottom here.

If you have been waiting to get in, now is a good time to dip your toes into the water. Or you can wait for confirmation at around 280(red line) if you like to play it safe. Or if you are eager but want safety at the same time, you can wait until BABA breaks out the 21 EMA @ 266, which killed the previous rebounce.

Best luck trading!