From the letter I posted on New Year’s Day, I had a strong opinion on a bounce in Chinese stocks here in 2024. We’re still in January so we have a lot of months still for further continuation to the upside into the year. So far China stocks have been reluctant and just in a nasty downtrend — I have been a buyer of names with strong fundamentals (for example: Alibaba).
BABA monthly chart:
The low wick shows that buyers are stepping into the picture and the price is nearly back to where we started our position beginning of the year.
I love looking at longer time frames like the monthly when purchasing common stock as you can grasp where the trend is going next compared to daily and hourly charts.
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