My name is Philip, I am a German swing-trader with 4+ years of trading experience and I only trade stocks, crypto, options and indices🖥️
I only focus on the higher timeframes because this allows me to massively capitalize on the major market swings and cycles without getting caught up in the short term noise. This is how you build real long term wealth!
In today's anaylsis I want to take a look at the bigger picture on Alibaba.
For me personally it was quite impressive that Alibaba stock dropped more than 80% after the massive 400% increase from 2015 to 2020.
Recently Alibaba stock retested and already rejected the previous all time low of 2015 and I think that it is just a matter of time until we will see a monthly bullish break of structure.
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I know that this is a quite simple trading approach but over the past 4 years I've realized that simplicity and consistency are much more important than any trading strategy.
BABA faces lot of problems. Among them geopolitics are very strong. We won't see anytime soon a BABA reversal, I mean a real reversal. Even if BABA is very largely undervalued - its price now is the same it had somewhere in 2016 when it was just a baby compared to today -, we'll see it in the $40/60 area first. Timing is very important and I think it's not now the right time to buy the stock for the long term.
The chart is pretty good, as is the idea in general. But the risks are quite high right now. I wonder what your risk-management strategy is for this trade?
Timing is very important and I think it's not now the right time to buy the stock for the long term.