ALIBABA GROUP HOLDING-SP ADR is setting up nicely for a breakout.

Our stock screener has identified ALIBABA GROUP HOLDING-SP ADR (NYSE:BABA) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:BABA.

Technical Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, BABA scores 7 out of 10 in our technical rating. Although BABA is a bad performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• BABA is an average performer in the Broadline Retail industry, it outperforms 56% of 33 stocks in the same industry.
• BABA is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so BABA is lagging the market.
• In the last month BABA has a been trading in the 76.51 - 85.79 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

For an up to date full technical analysis you can check the technical report of BABA

How does the Setup look for NYSE:BABA

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:BABA scores a 8 out of 10:

Besides having an excellent technical rating, BABA also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 82.24, a Stop Loss order could be placed below this zone.

Trading setups like NYSE:BABA

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

More breakout setups can be found in our Breakout screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.