BABA hit bottom?
The Current Trend
Alibaba shares have fallen more than 10% in Hong Kong trading as the Chinese internet retailing behemoth warned of a decline in consumer spending.
The business predicted that its yearly sales will rise at the slowest rate since its initial public offering in 2014.
The poor results highlight the company's problems with rising competition and Beijing's regulatory tightening. Alibaba's US-listed shares finished the New York trading day down more than 11%.
Price has fallen by 55% from all-time highs. Currently, the stock is testing a critical support zone from May 2019. The next support zone, if this is broken, is at the $130 level.
The DeMarker indicator is showing an oversold level.
Long positions could be started after the price makes a higher low and a higher high, which crosses above 150.00. A possible profitable exit point for this trade is at higher resistance levels: 190.35, and 208.00. A possible stop loss for this trade: 117.50 -- Implementation Period: 7 days or more.
Orders
Order: Buy Stop
Entry Point: 151.00
Take Profit: 190.35, 208.00
Stop Loss: 117.50
Let me know what you guys think.
Disclaimer: I personally own BABA stock in my portfolio.
The above references an opinion and is for information purposes only. It is not intended to be investment or trading advice. Seek a duly licensed professional for investment and trading advice.
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