Ugly Chart of the day: BABA

Baba was the talk of the Street when it IPO’d last fall and quickly zoomed up from $80 to $120 in a matter of weeks. However, after forming a classic short formation back in November, it has given back all it’s gains and now sits 5 points below where it opened.

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Yes, the chart is ugly. You probably do not want to trade it right now. You see, we like pretty charts. Parabolic charts. Trending charts. Breakout charts. 

But still, every once in a while there is an ugly duckling that shows signs of turning into a swan. There are some subtle hints that BABA might have put the worst behind it and is ready to turn pretty. 

These hints lie in the volume pattern. Okay that’s it. I’ve said to much. You can figure out the rest . . .

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