Alibaba Group Holding Ltd. (NYSE: BABY) shares were trending on Stocktwits Monday, trading the stock in the session.
Alibaba Technical Levels to Look At: The five-minute short-term chart above shows that the stock is trading in a channel.
The top of the channel is near the $ 242 level and the bottom is near $ 226. These areas could not break before.
The stock traded below the VWAP (pink) and the 200 moving average (blue) on Monday morning. These areas may also hold short-term resistance until the price above breaks.
If the price rises above these levels, it can be considered as short-term support.
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Alibaba Daily Chart Analysis: The daily chart above shows that the stock has been on an overall declining trend over the past three months. This can be shown by connecting the highlights of the graph and observing that the slope of the line is negative. The chart also shows a potential refusal area near the $ 225 area.
Another possible resistance area on the daily chart is the 200 day moving average; this area floats, depending on previous prices. The average is Monday $ 260, but will change over time. A break can cause the average to change in support.
Bullish technical traders would like to see the stock have a “double bottom” pattern and resist again. A break of the downward line connected by previous highs could cause the stock to start trending upwards.
For a technically bearish trader, it is a ‘declining triangle pattern’, where the stock tends downwards to a support level and price consolidation until it is pushed to the support level and falls through, usually with a strong movement after the support is broken.
Alibaba traded on Monday with a market capitalization of $ 651 billion.
BABY prize action: Alibaba shares fell 3.61% at $ 27.38 with the last check on Monday.
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