BABA, BIDU, XIAOMI and prob. more Chinese tech might be good buy

Hi,

I've placed some positions in the mentioned three, as a less conservative investment for 2022.

Reasons:

Fundamental:
- The whole Chinese tech sector is beaten down since 2020, it's not excluded to fall more.
- Earnings rise well, p/e ratio could be lower but for tech it's totally ok.

Technical:
- 1.5 years down is usually "enough" :)
- Well below 100W and 200W MA
- They look like they went through a reversal recently.
- 1D chart: Bullish divergence on RSI, weakening downtrend / starting uptrend is indicated in MACD.
- 1W chart: same observations as 1D chart
- 1M chart: no completed divergence / trend change yet, but starting.

Overall I like it, entered BABA @ $123, same time the others.

Expectations (telling BABA only): Trend reversal, 30-40% growth in 2022, up to ~170-180

Worst case scenario: Downtrend continues short-mid term, next resistances: bottom of channel, $105, $85, $60.
If worst case scenario happens, I'll re-analyze and might double the position observing it a few weeks. I'm pretty sure they will come out positive this year even in worst-case.

Cheers,
Antonio

Kommentar:

So far, so good. Stable position. I'm willing to increase it in the next month or two if it proves the trend reversal path.

Kommentar:

Watching if it gets another >10-15% leg down from my position. A good date to evaluate action between 01 Feb 2022 and 04 Feb 2022, as earning come out and if it gets lower during holidays, it's a possible turnaround.

My worst-case scenario is ~25%-30 down from my positions, from where I think it will still rebound during the year to a good, profitable area. In the case of a >15% drop I'll double my positions in Chinese tech.