Analysis for BABA
With the chinese lockdown being over and the massive stimulus efforts in China to combat the negative effects of the pandemic investors are getting more confidence in Chinese equities more recently. But BABA as well as many other Chinese stocks have been in a very long term downtrend for over a year and a half. So the long term trend is obviously down as you can see marked by the pick lines. Around the beginning of the year BABA melted down below this downtrend with accelerated momentum when China announced the lockdowns of major cities. Many stocks in China got a nice bounce on the news of stimulus measures and lockdown reopening. So things are looking more bullish for BABA in the very short term. I have marked some possible price moves in green. If you are bullish on BABA then you could see these moves up to the resistance levels I have marked by the yellow horizontal lines. Overall the macro environment is not accommodative to risk equities but with the chinese stimulus package rolling out we could possibly see some outperformance in china compared to other countries.
Some important things to note from the technical indicators is the 100 and 50 day standard and exponential moving averages. The 100 day EMA and SMA are very strong resistance levels that BABA has had trouble getting above in the past. The 100 day SMA has been known to be the Bull Market Indicator. Some say when we are above the 100 day moving average then we are in a bull market in the associated stock. Oppositely below the 100 day SMA is considered a bear market for a stock. Also note that the 50 SMA and EMA act as strong resistance levels as well but not as strong as the 100.
Also take note of the possible wedge pattern forming. It is a sloppy looking wedge but a wedge none the less. So keep an eye out for a break out or a brak down out of this potential wedge pattern if it does indeed form.
Also take note of the possible wedge pattern forming. It is a sloppy looking wedge but a wedge none the less. So keep an eye out for a break out or a brak down out of this potential wedge pattern if it does indeed form.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Trade the trends via technical, fundamental, and macro analysis. Day Trades, swing trades, and long-term investments.
16KFollowers
2948Following
28KVisitors
Follow