Trade of the Day
Alibaba Group Holdings Ltd (NYSE: BABA)
(Current Price: US$88.71) – TECHNICAL SELL
Sell price: US$88.71 Stop loss: US$92.00 Take profit: US$80.50
The price has broken down a bearish flag it was trading in. There were also bearish signals such as a retest of the recent horizontal support in August at US$94.50 turned resistance in September as well as a bearish crossover on the Moving Average Convergence Divergence (MACD) technical indicator. From a longer term perspective, the price has also formed a lower swing high in August compared to the swing high made in April since rebounding from the US$80.50 horizontal support level, which also displays a bearish signal.
Should the price continue its bearish momentum, it could retest the support level at US$80.50 which has acted as a horizontal support level from March to June.
Expected timeline of the trade is 4 weeks from the date of report issuance.
Join our telegram channel on technical analysis for trends, entry and exit prices over Stocks, ETFs, and Indices!Featuring regular TA posts and requests to analyse specific stocks