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.
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…
Comments are closed.