AliBaba and Caveman Trading

Three days back (May 24th) BABA was moving up crazy.

We traded BABA in our day trading chat room and made awesome money.

We exited near $81.

Next day (May 25th) BABA tanked due to the news on its accounting practices.

But look where it tanked.

Right on 200 day moving average.

Then today (May 26th) it gapped up to the middle of the yesterday’s candle and did not fade.

Rather trying as I write to penetrate the 50 day moving average from below.

This tells me BABA wants to go back up.

Therefore, based on the above thesis I am long BABA today for few days.

Chart of BABA shown below:BABA-May 26-2016

 

 

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