π₯ππ BABX Breakout: Iβm Positioning Ahead of the Next $49 Run πππ₯
$GRANITESHARES 2X LONG BABA DAILY ETF(BABX)$ $Alibaba(BABA)$ π²πππ ±οΈ UΝ LΝ LΝ IΝ SΝ HΝπΊ
π Why Iβm Convicted
Iβm fully convinced GraniteShares 2x Long BABA Daily ETF ($BABX) is in the middle of a structural breakout. Iβve watched this trade accelerate for two sessions straight, fueled by a surge in liquidity and volume that signals institutions are stepping in, not just retail momentum. Price has already exploded +15% into $43.52, and I believe this isnβt the end of the move.
π Technical Roadmap
Iβm tracking the $45.28 resistance as the key pivot. If we clear that level on strong turnover, the path opens toward $49.29, which aligns with the next liquidity pocket. My support zones are anchored at $38.93 and deeper at $31.81, which served as the breakout base. Iβm not trading noise here; Iβm managing probability-weighted levels where demand has been proven.
π Flow Dynamics
Iβm watching the options tape closely: 429 contracts traded with a heavy call skew of 363 vs 66 puts. Thatβs confirmation of directional conviction. The 627K shares shorted represent potential acceleration fuel if momentum forces a cover cycle. AUM cooled slightly to $154.2M from $170.5M, yet daily turnover of $65M shows buyers remain in control. Iβm reading this as leveraged positioning, not a tired move.
ποΈ π¨π³ China AI Chip Shift
On 11Sep25, Reuters reported that Alibaba and Baidu have started using internally designed chips to train their AI models, partly replacing Nvidia hardware. Alibaba has been deploying its own chips for smaller models since early this year, while Baidu is testing its Kunlun P800 chip on new versions of its Ernie AI model.
This marks a pivotal move in Chinaβs tech and AI landscape, where reliance on Nvidiaβs GPUs has been the norm. Growing U.S. export restrictions on advanced AI chips have accelerated Beijingβs push for home-grown solutions, pressuring companies to scale their domestic arsenal.
Despite the shift, both Alibaba and Baidu continue to rely on Nvidia for their most advanced models. The balance highlights both the necessity of Nvidiaβs cutting-edge performance and the rising ambition of Chinese firms to secure independence in critical AI infrastructure.
π Alibaba stock jumped +7.3% in morning trade, while Baidu gained +4% following the news.
π€ Do you think this shift signals the start of Chinaβs real independence in AI hardware, or will Nvidiaβs cutting-edge GPUs remain irreplaceable for the foreseeable future?
β‘ Momentum Structure
On the 5-minute and 4-hour views, BABX is hugging the upper Keltner and Bollinger bands with near-perfect alignment across EMA 13/21/55. ATR multiples are extended, yet RSI hasnβt rolled over into divergence. Thatβs critical: it tells me momentum is stretched but not exhausted. This is what institutional trend capture looks like.
𧩠Macro Catalyst
The story isnβt just BABX, itβs Alibaba. I believe sentiment is turning in Chinese tech as US-China trade rhetoric softens and regulatory pressure eases. BABA strength is the engine, and BABX is the amplifier. This is where macro positioning collides with leveraged instruments, and thatβs why Iβm staying long-biased until structural resistance proves otherwise.
π― Conclusion
Iβm not chasing noise; Iβm positioning into structure. BABX has already proven it can explode when Alibaba sentiment shifts, and the flows confirm this isnβt retail froth, itβs institutional recalibration. The $45.28 level isnβt just resistance: itβs the threshold to another leg higher that could redefine this ETFβs trajectory.
I believe the setup is asymmetric: upside into $49+ carries far more probability than downside beyond $38, given the velocity of volume and alignment of catalysts. My conviction is that BABX isnβt done; itβs in the middle innings of a larger move, and Iβm trading it with that foresight.
π’ Donβt miss out! Like, Repost and Follow me for exclusive setups, cutting-edge trends, and insights that move markets ππ Iβm obsessed with hunting down the next big movers and sharing strategies that crush it. Letβs outsmart the market and stack those gains together! π
Trade like a boss! Happy trading ahead, Cheers, BC πππππ
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Modify on 2025-09-12 00:47
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