The BABA weekly chart showcases a powerful breakout, accompanied by substantial volume, signaling strong bullish momentum. The price has decisively broken through key structural resistance and surged above the IPO AVWAP, reinforcing the strength of this move. However, the RSI is approaching overbought territory, and there’s a potential for a double top formation. Should this scenario unfold, a retest of the IPO AVWAP around the $130 level would be a healthy sign, potentially providing a strong entry point for bulls. The immediate resistance stands at $159.20, and a successful flip of this level could pave the way for targets at $174 and $197. Additionally, the significant volume increase could indicate institutional participation, adding credibility to the breakout. Keeping an eye on the volume trend during any pullback will be crucial to assess whether sellers are stepping in or if the bulls remain in control.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.