Baba

15 mar

Price is overbought on the monthly and weekly money flow and RSI..

This current rang trade is likely distribution



Also we are 30% extended from the 50 SMA . This is extreme



I would buy this at all up here , I think we will retest 104-108 (Weekly200ma) on a pullback before we break over 150.


I don't know when this distribution breaks and price resets but until then you can just trade the range 145-130...


Id take a short at 145-150 a few months out . .stop loss over 150.


Below I will show you a perfect example of price being extended and over bought at resistance and distributing..

This is AVGO.

Notice how it tagged it's trendline (Red arrow.


Now at that point the technicals were pretty overbought similar to where baba is now

Now zoom in here and notice price traded in what looked like a bullish pennant here at resistance


But look how it panned out


It was never a pennant, it was distribution in disguise..

every now and then you get a meme type of movement like PLTR or Mstr where technicals are thrown to the window but I don't think this is it

Nota

I knew this was distribution... Now you know how to spot it too...