Trend Tracker for Alibaba Group Holding Limited BABA

July 27, 2021, 22:45 pm ET, BY Scott B.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

The data for Alibaba Group Holding Limited (NASDAQ: BABA) herein utilizes proprietary algorithms produced by Stock Traders Daily and refined since the turn of the century.

Warning:

This is a static report, the data below was valid at the time of the publication, but support and resistance levels for BABA change over time, so the report should be updated regularly.  Real Time updates are provided to subscribers.  Unlimited Real Time Reports.

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Instructions:

The rules that govern the data in this report are the rules of Technical Analysis.  For example, if BABA is testing support buy signals surface, and resistance is the target.  Conversely, if resistance is being tested, that is a sign to control risk or short, and support would be the downside target accordingly.  In each case, the trigger point is designed to be both an ideal place to enter a position (avoid trading in the middle of a trading channel), and it acts as a level of risk control too.

Swing Trades, Day Trades, and Longer term Trading Plans:

This data is refined to differentiate trading plans for Day Trading, Swing Trading, and Long Term Investing plans for BABA too.  All of these are offered below the Summary Table.

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 194.64, target n/a, stop loss @ 195.2 Details

The technical summary data is suggesting a short of BABA as it gets near 194.64, 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 195.2. 194.64 is the first level of resistance above 186.07, and by rule, any test of resistance is a short signal. In this case, if resistance 194.64 is being tested, so a short signal would exist.

Swing Trading Plans for BABA

• Buy BABA slightly over 194.02, target 194.64, Stop Loss @ 193.46 Details

If 194.02 begins to break higher, the technical summary data tells us to buy BABA just slightly over 194.02, with an upside target of 194.64. The data also tells us to set a stop loss @ 193.46 in case the stock turns against the trade. 194.02 is the first level of resistance above 186.07, and by rule, any break above resistance is a buy signal. In this case, 194.02, 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 194.02, target n/a, Stop Loss @ 194.58. Details

The technical summary data is suggesting a short of BABA if it tests 194.02 with a downside target of n/a. We should have a stop loss in place at 194.58 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, 194.02, 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 194.02, target 194.64, Stop Loss @ 193.57 Details

If 194.02 begins to break higher, the technical summary data tells us to buy BABA just slightly over 194.02, with an upside target of 194.64. The data also tells us to set a stop loss @ 193.57 in case the stock turns against the trade. 194.02 is the first level of resistance above 186.07, and by rule, any break above resistance is a buy signal. In this case, 194.02, 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 194.02, target 181.14, Stop Loss @ 194.47. Details

The technical summary data is suggesting a short of BABA if it tests 194.02 with a downside target of 181.14. We should have a stop loss in place at 194.47 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, 194.02, 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 July 27:

Term →	Near	Mid	Long
Rating	Weak	Weak	Weak
P1	0	0	194.64
P2	181.14	194.02	217.53
P3	199.26	211.44	240.76

Support and Resistance Plot Chart for BABA

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