Alibaba Group stock (NYSE:BABA) is now in a precarious situation. The
stock really made genuine bullish effort in recent times, but bear has come in
to overpower bull, and things are now experiencing some downturn.
From January 2019 to early May, price was going northwards; but further northwards
movement has been rejected as price has come downwards.
4 EMAs are used for this analysis and they’re EMAs 10, 20, 50 and 200.
The color that stands for each EMA is shown at the top left part of the chart.
Until now, the EMAs were sloping upwards, and as a result of the recent
bearishness in the market, the EMAs 10, 20 and 50 are now pointing downwards.
As price has also dropped below the EMA 200, a Death Cross is expected soon, in
case price stays below the EMA 200.
All these point to a possible continuation of the ongoing downtrend in
the market, which may eventually lead to a confirmed bearish trend. Yes, things
on BABA look really precarious.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Trading realities: Trading realities
No comments:
Post a Comment