Which Level Will Alibaba Break? Add It To Your Watch List Now So You Don’t Miss It

Which Level Will Alibaba Break? Add It To Your Watch List Now So You Don’t Miss It

Posted On May 12, 2023 10:28 am

It’s Friday and because it’s Friday, figured why not provide you with a no nonsense trade, curtesy of Alibaba (BABA). While the setup up may be straight forward, the trade is not. However, in this case the trade takes a back seat to the setup. As you can see by the chart in my video below, we have two clearly defined levels, one of support and one of resistance.

On the side of support, we have that 80 level coming into play twice over the past couple months with the price failing to go lower each time it came and touched that level. Even with the most recent test of this level, price once again failed to break lower. In fact, price bounced off this level and is now looking to make a run toward that upper level of resistance.

This trendline you see has been the result of making lower highs throughout these past several months, which could be an indication of a downward trend. However, since 80 has stepped to buoy the stock one could reasonable assume we are going to make one more attempt at that upper trendline.

Currently, there is no clear trade to make. A break of either level would clue traders as to whether to put a bullish or bearish trade on, so for now, keep this stock on your watchlist to see which breaks first. Even if price breaks either of these levels, you’ll want to make sure it is not a fakeout. However, given the current short-term trend and remembering that we are presumably not the only traders seeing these clear as day trend lines, a possible trade could be a slight rejection off that upper resistance line.

Again, this stock is in a bit of no mans land until we get to these levels and price action will dictate which trade to put on. Though this setup is clear, this is a good opportunity to…

Watch the full breakdown video at WEALTHPOP.com


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