Trading Alibaba Group Holding Limited BABA With Integrated Risk Controls

December 03, 2021, 08:30 am ET, BY Robert S.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

Price matters most to #makingmoney in the #stockmarket. Celebrating 20 years, Stock Traders Daily provides the tools that help you develop investment strategies, and this is a good example. When we couple this with our market based analysis, the probabilities of going with the flow increases, and that is material over time. The Alibaba Group Holding Limited (NASDAQ: BABA) report below can help you, but we have more details too. The trading plans for BABA, and the other 1000+ stocks we follow, are updated in real time for subscribers, but this report is static. If you want an update, or a different report, please get one here Unlimited Real Time Reports.

Longer Term Trading Plans for BABA

• NONE. Details

There is no current Support Plan to trigger a buy of this stock at this time. This usually means that there are no clear support levels at this time, so buying the stock as it falls could be considered catching a falling knife. Buy signals only exist if resistance breaks higher.
This often is a signal that the stock you are watching is weak. Waiting for a turn higher may be more intelligent than trying to catch a falling knife. In any case, new support levels are usually revised to the database at the beginning of the next trading session.

• Short BABA under 135.65, target n/a, stop loss @ 136.04 Details

The technical summary data is suggesting a short of BABA as it gets near 135.65, but the downside target is not available from the current data. This tells us to hold that position if it is triggered until a new downside target has been established (updates occur at the beginning of every trading session) or until the position has been stopped. The summary data tells us to have a stop loss in place at 136.04. 135.65 is the first level of resistance above 119.2, and by rule, any test of resistance is a short signal. In this case, if resistance 135.65 is being tested, so a short signal would exist.

Swing Trading Plans for BABA

• Buy BABA slightly over 123.48, target 135.65, Stop Loss @ 123.12 Details

If 123.48 begins to break higher, the technical summary data tells us to buy BABA just slightly over 123.48, with an upside target of 135.65. The data also tells us to set a stop loss @ 123.12 in case the stock turns against the trade. 123.48 is the first level of resistance above 119.2, and by rule, any break above resistance is a buy signal. In this case, 123.48, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short BABA near 123.48, target 111.18, Stop Loss @ 123.84. Details

The technical summary data is suggesting a short of BABA if it tests 123.48 with a downside target of 111.18. We should have a stop loss in place at 123.84 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 123.48, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for BABA

• Buy BABA slightly over 120.15, target 123.22, Stop Loss @ 119.87 Details

If 120.15 begins to break higher, the technical summary data tells us to buy BABA just slightly over 120.15, with an upside target of 123.22. The data also tells us to set a stop loss @ 119.87 in case the stock turns against the trade. 120.15 is the first level of resistance above 119.2, and by rule, any break above resistance is a buy signal. In this case, 120.15, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short BABA near 120.15, target 111.18, Stop Loss @ 120.43. Details

The technical summary data is suggesting a short of BABA if it tests 120.15 with a downside target of 111.18. We should have a stop loss in place at 120.43 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 120.15, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

BABA Ratings for December 03:

Term →	Near	Mid	Long
Rating	Weak	Weak	Weak
P1	0	0	135.65
P2	120.15	111.18	155.77
P3	123.22	123.48	173.39

Support and Resistance Plot Chart for BABA

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