Will ALIBABA GROUP HOLDING-SP ADR Break Out? A Technical Analysis Perspective.

A possible breakout setup was detected on ALIBABA GROUP HOLDING-SP ADR (NYSE:BABA) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:BABA.

Zooming in on the technicals.

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Taking everything into account, BABA scores 7 out of 10 in our technical rating. This is due to a decent performance in both the short and longer term time frames. Compared to the overall market however, BABA is a bad performer.

• The long and short term trends are both positive. This is looking good!
• In the last month BABA has a been trading in the 77.74 - 85.79 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• BABA is an average performer in the Broadline Retail industry, it outperforms 65% 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 trading in the upper part of its 52 week range, so BABA is lagging the market slightly.

Our latest full technical report of BABA contains the most current technical analsysis.

How does the Setup look for NYSE:BABA

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:BABA currently has a 8 as setup rating:

Besides having an excellent technical rating, BABA also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 79.77, a Stop Loss order could be placed below this zone.

How to trade NYSE:BABA?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

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.