Alibaba's Outlook
Alibaba is still consolidating near these two strong technical levels that I have highlighted by the yellow and blue trend lines. BABA's price action has been stagnant at these technical levels for a few weeks. When will this ticker pick a direction? I wish I knew the answer. But when it does pick a direction then I have mapped out all of the important trending and horizontal supports and resistance levels to watch in the chart below.
When Alibaba's price does eventually break out of the current wedge formation that is in then that will more than likely be the time when the market will pick a direction for this ticker symbol. But be very careful because the last time we had a wedge setup like this on Alibaba there was a false breakout. Actually it was more like a whipsaw break out to the upside and to the downside before picking it's ultimate direction. This basically whipsawed everyone out of their options or warrants so the market makers could take all of the premium. So watch out for a false breakout or a whipsaw break up again. I have highlighted that instance in the chart below.
I'm still holding a small long position so I really hope this thing can see some upside very soon.
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gideonl : This is HK or US?
102640653 : Thanks
wisdom 90 : Thanks for sharing your analysis
102640653 : It look like a bottom here n breaking out from the wedge pattern upwards both Alibaba n Tencent . Just take a look . It’s already coming n moving upwards already. Tencent has already stated n trying it’s best to move above 320 hkd.
SpyderCall OP gideonl : hk
SpyderCall OP 102640653 : I know that the news is talking about Hong Kong and Chinese stocks got some positive sentiment today off of the Chinese government slashing some loan interest rates or something. they're basically making borrowing costs cheaper which is good for the markets usually. I'm not an expert on the Chinese markets though....I'm still looking at tencent
102640653 SpyderCall OP : Someone is trying to push Alibaba . Also controlling the index with it. Might start off a new move on baba, Tencent n index. They just using heavyweights for the index movement first then it come to seconds liner n penny stocks. If I’m right if Alibaba moves up it would break off 120-125 resistance easily same as for Tencent 380-400 zone . Earnings were good to consider. It’s been long consolidation period . It should come
SpyderCall OP 102640653 : you have a long time for your investment so I still wouldn't worry at all about your trade yet.... I posted a tencent technical post. I still couldnt tag to in it. so go check it out.
SpyderCall OP 102640653 : I think it is interesting how tencent is bouncing off the previous 52 week lows from a couple months ago. it's actually bouncing off a strong Fibonacci level just like the previous 52 week low bounced off of also. tencent is starting to look a little bit better than Alibaba in fact.
gideonl : Current support or lower trend line of the wedge has been tested 4 times. Wonder if it will fill the gap down first or breakout of the wedge...no upcoming news or catalyst so far to move the stock too.
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