<center>https://cdn.steemitimages.com/DQmetJyXCPVtRDwNADucekcTzSbSY5ZDCpa2Wnn3FfUFa2m/image.png</center>


Boy, I got this wrong. Two months ago, I wrote about Tencent, the Chinese social-media giant.  What I saw on the chart was a hammer candle on the weekly chart this week. 

![](https://cdn.steemitimages.com/DQmStUTj5Xfkvebxpd7Lyq1bw1zqvNc1UrLFAnhLUzR3SZ6/image.png)

The daily chart on 8/17 supply exceeded demand at the prior day’s closing price and price gap down the following day, but only to closer higher by the end of the day. This is known as a Professional Gap.

![](https://cdn.steemitimages.com/DQmXJSwc1qXTLR2Vdmsi4ZJWiix11rG5PwrFskTrnRrGCTr/image.png)

<center>[Footsteps Of Smart Money Buying Tencent](https://steemit.com/money/@rollandthomas/footsteps-of-smart-money-buying-tencent)</center>

But the trade set-up didn’t work out and Tencent is down another $10 since that time. 

![](https://cdn.steemitimages.com/DQmRa8uQMsrxYKZyR5ffypaNqPXHC9XZKTxuQQeJj2qasPj/image.png)

Chinese stocks have lost about 30% of their value since the start of 2018 resulting in the Shanghai Composite index dropping to its lowest level in almost four years due to a slowing economy, rising debts and the continued trade war.

One of the stocks beaten up in the process has been Alibaba.

![](https://cdn.steemitimages.com/DQmQNWSusCUhZLDuMF6d3EcPVn6nTSWzkoWqKehnrNbS6NS/image.png)

I admire Alibaba because I think they are one of the few companies that can hold their own against Amazon.  Motley Fool thinks Alibaba could rise from these levels.

>China's e-commerce market will grow to $1.8 trillion by 2022, according to Forrester, up from $1.1 trillion this year. Alibaba is positioned to benefit from this growth perhaps more than any other business. The company dominates e-commerce in China, with a greater-than-50% share, according to Statista.

>Alibaba has invested $4 billion in Lazada, a Singapore-based online mall that's given it a strong foothold in the high-growth Southeast Asia market. Alibaba also recently partnered with Russian tech giant Mail.ru to launch a new e-commerce joint venture that reportedly has the support of the Kremlin, giving it a powerful advantage over rival platforms.  Alibaba's global ambitions are already bearing fruit: International commerce retail revenue surged 64% to $652 million in the first quarter.

>Despite its bright future, Alibaba is now trading at less than 20 times forward earnings estimates after its 30% decline in recent months. That's an attractive price to pay for a dominant business that's projected to grow its revenue and earnings per share by 39% and 36%, respectively, in the next year.

I don't disagree with Motley Fool and although Alibaba is bouncing off of weekly demand now.  

![](https://cdn.steemitimages.com/DQmUkh5Z8sY4PSehrTkHUgxCuwkMjSdQ4WQuERK877E5T3m/image.png)

The Shanghai Composite needs turn around firs before going long Alibaba. 

![](https://cdn.steemitimages.com/DQmUxLcWaN32brVY3rbyWVV4mT6uN6sEHf5EBFysN9x1Tha/image.png)

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

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