How You Can Trade This Alibaba (BABA) Set Up
Today’s big stock pick is one we have analyzed a couple times in the recent past because of the setup it has continued to hold. Alibaba’s (BABA) descending triangle, as you’ll see in the video, has continued to hold with the stock’s price getting tighter and tighter within the pattern. It’s only a matter of time before it breaks one way or another.
There is still that key support level down at 80 which has yet to be broken in any real way and until it does, this should still be looked at as a pretty durable bounce or support level. However, it’s wise to take into account your overall view on the market before you really determine what trade to take at any level.
If you’re bearish and figure we are in a downtrend, then maybe this become a level you watch for a breakdown. Then again, if you still feel like we are bullish and the market is simply pulling back, then looking for calls at a support level is the way to go. As of now, the market seems to, at the very least, be pulling back after that brief rally from last week. If thats the case, the market could drag BABA down with it, at least in the short term. Either way, this stock has provided a clear set up that is easy for the rest of the market to see, so this is one you’ll want to have on your watchlist.
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