Trade of the Day – Alibaba Group Holdings Ltd (NYSE: BABA) March 22, 2023 228

Trade of the Day

Alibaba Group Holdings Ltd (NYSE: BABA)

(Current Price: US$83.70) – TECHNICAL BUY

Buy price: US$83.70     Stop loss: US$79.00     Take profit: US$92.00

The price has broken out of a downtrend channel following a breakdown of the prior uptrend channel, forming a bullish morning star candlestick pattern on 21st March. This took place at the confluence of a 61.8% Fibonacci retracement level using a swing high of US$121.30 and swing low of US$58.01, as well as the previous horizontal support level formed in April to May last year.


The Moving Average Convergence Divergence (MACD) technical indicator also made a fresh bullish crossover with the MACD line over the Signal line, which provides a bullish signal.

We could see a retest of the resistance at US$92.00 which is confluent with a swing high formed in late February this year.

Expected timeline of the trade is 2-4 weeks from the date of report issuance.

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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