Alibaba follows technical trends

get the technical analysis for Tencent in the link below

when looking at the weekly candles in the chart below you can see that alibaba's share price has broken above a long-term descending wedge pattern. this is a bullish notion if you are a long-term investor. basically the price is consolidating after a very long term downtrend as investors accumulate positions at this very low price for a possible move to the upside. there is always a possibility that there could be another leg down in the future but if you trade technical patterns then a long-term investment is starting to look good right now.

in the chart directly below there are daily candles. I've highlighted what I think are the strongest support and resistance levels as you can see alibaba's price action react often near these trend lines. right now Baba's price is somewhat in no man's land near the middle of a range. it would be difficult to pick a direction at this point. but for the past couple of weeks the short-term trend is down. personally I would not make a play at this level.

if you are a day trader then you can see a nice wedge pattern that is formed in the chart below. you could possibly make a day trade off of the break out to the upside or downside of this wedge.