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Todays Big Stock Wealthpop News

Why Alibaba (BABA) May Be The Trade Of The Week


We are revisiting an old favorite today for our trade break down and we are looking at the same set up, only this time, it is a bit further along in its formations. If you recall from our last look at Alibaba (BABA), we were in the midst of a move upward within the larger trend of a descending triangle or wedge. Well now, we are just about ready to touch the upper level of resistance on that formation.

For the bullish side of this trade, we have a lot in the way of price that might hold it back from going higher. These resistances come in the form of two moving averages (50 and 200 SMAs), the upper trendline, as well as the whole psych number of 90. If price is able to push through all of that then we should see BABA make another leg higher.

However, if we were to reject at that area of confluence, we would likely see lower prices and not see any support until we made it back down to 80. Despite all that overhead resistance, the current trend is still upward until it isn’t. So, keep BABA on your watchlist if you don’t have it there already for a possible run to the upside.

Learn to find these levels for yourself when you join The Profit Machine. There, you’ll learn all about my favorite stocks, setups, strategies, and plenty more. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

Get a jump start on your options education and put yourself in position to win in 2023. Sign up today! Until then…

Good Luck With Your Trading!

Christian Tharp, CMT

Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group. My Chartered Market Technician (CMT) designation substantiates me as an expert in areas such as the technical analysis of stock trends, market indicators, cycles, price patterns, Elliot Wave principles, Candlestick charting, analyzing financial trends and behaviors, portfolio strategies, and forecasting future price movements. With my straightforward approach to simple, systematic trading, students learn how to strategically assess buy signals and market entry timing, establishment and management of stop losses, and how to employ a simple and disciplined trading approach that creates profits.

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