Alibaba (BABA): Stagnation Phase or Momentum Boost?
Updated
We are currently experiencing a phase of stagnation with Alibaba, as the stock remains in a new accumulation phase after breaking out of the previous one. The price might retest the Point-of-Control along with the trendline that was broken during the breakout, potentially providing a good momentum boost.
Despite the sideways movement, our position remains profitable. From a long-term perspective, our entry looks strong, with a 10% stop-loss from our entry point. The upside potential for Alibaba is significant, given how far the stock is from its historical highs.
The main concern with Alibaba is the jurisdiction risk, as it is a Chinese stock and subject to influences from China, which adds a layer of risk not present with American stocks. Nevertheless, as long as the price stays above $72.38, the outlook remains positive. Losing this level would be unfavorable and could indicate further downside risk.
In summary, we remain optimistic about Alibaba's potential, keeping a close watch on the key support levels to manage risk effectively.
Despite the sideways movement, our position remains profitable. From a long-term perspective, our entry looks strong, with a 10% stop-loss from our entry point. The upside potential for Alibaba is significant, given how far the stock is from its historical highs.
The main concern with Alibaba is the jurisdiction risk, as it is a Chinese stock and subject to influences from China, which adds a layer of risk not present with American stocks. Nevertheless, as long as the price stays above $72.38, the outlook remains positive. Losing this level would be unfavorable and could indicate further downside risk.
In summary, we remain optimistic about Alibaba's potential, keeping a close watch on the key support levels to manage risk effectively.
Trade active
Here we go 🚀
Alibaba is smashing it after the Chinese government has been doing everything it can to push the market. Since our entry, the position is now up over 45%, and with a stop loss of just 10%, we've already secured more than 4.5R with this trade. 🍾
It took Alibaba 425 days to breach the current $100 level, and I’m thrilled that the setup played out this way!
We’re still expecting much more upside from Alibaba, and even if it takes some time, we’re here to monitor the situation closely. We’re also ready to place another limit order as we've clearly turned bullish on this stock now. 🔥
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