Alibaba Group Holdings Ltd (NYSE: BABA) A potential bullish reversal to the upside  as:   

1. The formation of a bulish hammer candlestick on 3 October at the confluence of the double bottom and bullish falling wedge support level of 78.00 points towards a bullish upside.
2. The Relative Strength Index (RSI) technical indicator is displaying increasing momentum while the stock is consolidating at the double bottom support area which points to a bullish upside.
3. The price could reach the resistance level at 90.50 which is confluence of the 50% Fibonacci retracement level resistance, with the swing high of 104.85 and swing low of 76.28 as points of reference and Ichimoku base line resistance at 90.56.

*Expected timeline of the trade is 13 weeks from the date of report issuance.

CHART LEGEND

Red box = Resistance zone

Green box = Support zone

Blue line = Conversion line

Red line = Base line

Red area = Ichimoku cloud