Alibaba - A Bullish Continuation Breakout
BABABABA did a nice consolidation between $150-$160 region for the past 2 weeks. The pullback also sent BABA back into the "valuezone" where a slingshot trade is likely to happen thereafter. A breakout of BABA happened yesterday and it closed at a high of $158.84.
Technically, I would expect the breakout to face resistance around $160 level. And should BABA clear the level, the next resistance would be $162.50 level. Should this be a false breakout, BABA is likely to retrace to test the $152 level. Under the current market conditions, it's more likely that BABA would head up to test the overhead resistance then pull a retracement.
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