When Alibaba Group Holding Limited (BABA) Moves Investors should Listen

August 13, 2022, 08:45 am ET, BY Scott B.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

How do we know what is going on #behindthescenes of a company?  According to Stock Traders Daily, a 20-year #financialindustry innovator, the best way to do this to to watch the price action in the stock. The  Alibaba Group Holding Limited (NASDAQ: BABA) report below is a real world example. Included are trading plans for BABA, but this report is static. If you want an update, or a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for BABA

• Buy BABA slightly over 83.73 target 103.52 stop loss @ 83.49 Details

The technical summary data tells us to buy BABA near 83.73 with an upside target of 103.52. This data also tells us to set a stop loss @ 83.49 to protect against excessive loss in case the stock begins to move against the trade. 83.73 is the first level of support below 94.77 , and by rule, any test of support is a buy signal. In this case, support 83.73 is being tested, a buy signal would exist.

• Short BABA under 103.52, target 83.73, stop loss @ 103.82 Details

The technical summary data is suggesting a short of BABA as it gets near 103.52 with a downside target of 83.73. We should have a stop loss in place at 103.82though. 103.52 is the first level of resistance above 94.77, and by rule, any test of resistance is a short signal. In this case, if resistance 103.52 is being tested, a short signal would exist.

Swing Trading Plans for BABA

• Buy BABA slightly over 95.00, target 103.52, Stop Loss @ 94.73 Details

If 95.00 begins to break higher, the technical summary data tells us to buy BABA just slightly over 95.00, with an upside target of 103.52. The data also tells us to set a stop loss @ 94.73 in case the stock turns against the trade. 95.00 is the first level of resistance above 94.77, and by rule, any break above resistance is a buy signal. In this case, 95.00, 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 95.00, target 87.24, Stop Loss @ 95.27. Details

The technical summary data is suggesting a short of BABA if it tests 95.00 with a downside target of 87.24. We should have a stop loss in place at 95.27 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, 95.00, 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 n/a, target n/a, Stop Loss @ 0 Details

If n/a begins to break higher, the technical summary data tells us to buy BABA just slightly over n/a, with an upside target of n/a. The data also tells us to set a stop loss @ 0 in case the stock turns against the trade. n/a is the first level of resistance above 94.77, and by rule, any break above resistance is a buy signal. In this case, n/a, 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 n/a, target n/a, Stop Loss @ 0. Details

The technical summary data is suggesting a short of BABA if it tests n/a with a downside target of n/a. We should have a stop loss in place at 0 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, n/a, 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 August 13:

Term →	Near	Mid	Long
Rating	Weak	Weak	Weak
P1	0	0	63.71
P2	89.48	87.24	83.73
P3	94.70	95.00	103.52

Support and Resistance Plot Chart for BABA

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