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.
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