I love ratio analysis … X/Y. If X stronger then the chart goes up and if Y is stronger then the chart goes down.
the AMZN/BABA ratio is showing some signs of a coming bounce in the strength of AMZN vs BABA:
- .618 retracement from the all time low of the ratio
- a ‘basic’ minimum downside projection from the neckline of the ratio
- bullish divergence on the weekly RSI …
as you can see … AMZN took the strength from BABA for about a year .. then they were neck-in-neck (shown as the H+S developing) then in June 2017 BABA took off and started to outperform …
will be interesting to watch … found it interesting this morning.
Bart
