$BABA si trading in the right contitions and if you notice, its between 200 and 50 simple moving average. So far we need to see how we handle the gap up today. The markets are really strong on some expectations of virus easening and its hard to chase a momentum trade. Our suggestion is to position a pull-back trade from a breakout zone as back-tests of trendlines are often an element of the price action in this market. The zone that has been identified is 196 to 197 which also represents an important supply zone for the past two weeks that flipped with the current gap. Consider two shots for this idea in case we don’t hold the mentioned area from the first try. If we are going higher, note that 50SMA zone around 203-203.50 we have supply and a move past this resistance might be choppy.
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