BABA in Quarter End: A Reflection of China Economic and Trade Issues?
By
Mike Paulenoff
BABA-- for the month of June. BABA has traded from its new all time high at 211.70 (6/05) to yesterday's (6/28) low at 182.04 (-14%), and in so doing, has assaulted its up-sloping 200 DMA, now at 85.36. Although BABA traded beneath the 200 DMA yesterday, it managed to close above it, and remains above it so far this AM.
That said, to begin to get some positive traction, BABA needs to claw its way above the sharply down-sloping 5 DMA on a closing basis, now at 188.52.
In the absence of a close above the 5 DMA, BABA wil remain vulnerable to another loop down to rest the 200 DMA and yesterday's low (185.35 to 182.04), which MUST contain the weakness to avert downside continuation towards a series of multi-month lows lodged between 166 and 164, where BABA will look extremely toppy indeed
Such a negative scenario likely will imply or indicate that currency devaluation issues, and a potential trade war with US are scaring its faithful investor base... Last is 186.17/18
