BABA Heading to Final Support Level to Fill in the Gap
Alibaba's stock price has fallen sharply since last week due to a correction in the US markets. This combined with a big sell off in China due to trade wars has pushed price below 130.00. Now price is trading just above a gap back in April of 2017. On a final note, if you are considering to trade this stock follow the trade wars development closely.
Trade Step-ups:
Scenario One (Bullish Reversal): Price test key support and rejects a bullish breakout. Nevertheless, expect a strong possibility that price will fill in the gap.
Scenario Two (Bearish Breakout): Price breaks long term trend channel. Look for consolidation below 125.00
Trade Step-ups:
Scenario One (Bullish Reversal): Price test key support and rejects a bullish breakout. Nevertheless, expect a strong possibility that price will fill in the gap.
Scenario Two (Bearish Breakout): Price breaks long term trend channel. Look for consolidation below 125.00