Stock Of The Day / 02.14.25 / BABA

140
02.14.2025 / BABA #BABA

Fundamentals. Positive news about the planned meeting of Xi Jinping with top private sector leaders, including Alibaba.

Technical analysis.
Daily chart: The price is near the upper limit of the wide range of 60-120.
Premarket: The price is trading in range on increased volume after the Gap Up. We mark the premarket low of 125.30.
Trading session: The price goes below 125.30 after an unsuccessful attempt to update the premarket high. Then we observe retest the level from the opposite side around 10:00 am. We consider a short trade to continue the downward movement in case the level of 125.30 is hold.

Trading scenario: #pullback along the trend to level 125.30

Entry: 124.80 when the level is held and the exit down from the trading range under the level.

Stop: 125.43 we hide it behind the level with a small reserve.

Exit: The trade is opened against the global trend, so we fix the profit at the first signs of weakness of the downward movement. Close part of the position at a price of 121.76 when a reversal candlestick pattern with an increase in volume appears. Close the remaining part of the position near the ​​122.70 when the higher high is updated and the structure of the downward trend is broken.

Risk Rewards: 1/4

P.S. In order to understand the idea behind the Stock Of The Day analysis, read the following information.

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