Alibaba is Ready to Breakout, as the Stock Balances Above the 200d
Alibaba’s (BABA) appears ready to breakout, as the company recently reported annual active customers of 636 million, up 23% in the past year. The company added 35 million customers in the previous quarter alone. Alibaba is China’s retail marketplace leader.
Alipay hit a milestone in mid-January when the “digital wallet app” exceeded 1 billion active users. AliPay started in China spreading around the globe, boasting members from more than 110 countries and regions worldwide. – Source IBD
Alibaba (BABA) Daily
The stock has been consolidating along its 200d for the past 13 trading days, showing signs of an imminent breakout. We’ll use a trigger on price action and a break above 173.19 as our confirmation. MACD will turn as a function of price; that said, the indicator is above the zero-line, as price nearly tagged its rising 20d moving average last week.
Alibaba (BABA) 60 Minute
Here again, we see price action consolidating after breaking above trend line resistance. We will use a break above 171.15 as a reason to add to our current position. MACD is above its signal line on this timeframe.
If the indices, IWM, QQQ, and SPY cooperate today, with the latter regaining 277.80 (+/-), we should see a tailwind that will propel stocks higher. Target remains 280.00 (+/-) for the week.
Citigroup analysts recently issued its annual research report that analyzed the regulatory filings from the largest institutions and hedge funds. Stocks that funds were buying over the past 8 weeks included, Alibaba (BABA), Facebook (FB), Microsoft (MSFT), Alphabet (GOOGL), and Amazon (AMZN).
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Happy Trading,
Vinny
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