BABA

Alibaba: breakout attempt imminent?

Technical analysis for Alibaba stock examines a descending resistance line and signs of institutional money inflow ahead of a potential upward move.

By the SpyStocks desk · 4y ago · 2 min read

$BABA

It can be seen that the stock has been in a clear downtrend recently.

Looking from 17.2.21, when the declines began, we see a descending diagonal resistance line.

On the chart, one can see the descending resistance line the stock is in, while it is supported at $138-$140.

As of now, we can see an attempt to break out of the resistance line; if we close the day with the candle above the line (above $174-$172), an upward move in BABA stock is expected.

The next resistance point is around $200. (marked in yellow on the chart.)

Note: For a breakout, we want to see increasing trading volume!

We have also added (marked in blue) a unique indicator called AD, exclusive to FXG software; it is an excellent indicator that shows us institutional money entering the stock!

Also attached is a tool called Kagi from FXG software, which indicates the trend; when the Kagi is green, it indicates an uptrend has begun, and vice versa. (in the bottom image)

- Nothing stated herein constitutes a recommendation to act - The use of this information is solely at your own risk!

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