IF market weakness persists, traders may target $169.26 or a re-test of the April 2018 lows. In an ideal world, the perfect set-up would be for BABA to re-test those lows come fall, and then proceed to trade back above $182.57, confirming a low on the weekly and monthly time frames. OR Use $185.13 as support throughout this consolidation phase into year-end before reclaiming $198. Of course, the market rarely gives you the set-up you want. For now its best to trade both ranges; lower range -- $179.73 to $186.06 and the higher range -- $192 to $210, or if you believe in the long term trajectory of the company, buy in increments on prints between $169 to $185 and/or above $198.00. Like the broader market, this is going nowhere fast until tech consolidates further and a new sector emerges as a leader.
$189.72 remains the pivot to the lower ($179.73 to $186.06) and upper ($192 to $210) range. Meanwhile, $194.10 must hold by year end to keep the mid and long term uptrend intact. Those price points have not changed. Failure to hold onto these price levels would imply, at a minimum, further consolidation into the first three months of next year or a potential breakdown in price. Whether the breakdown is the beginning of a larger breakdown or a fake-out is unclear. A re-test of $179.68 - $181.15 by Labor Day would provide the ideal set-up to go long the stock at a favorable risk-reward set-up. You risk $19 in downside but have the possibility of making $30 to $50 in potential upside contingent on $194.10 holding into year-end. Call it a 2:1 risk/reward ratio. As mentioned earlier, markets rarely give you the ideal entry point unless it part of a larger move. If you are confident in the trajectory of the stock, buying in increments between $179.68 to $194.10 is the best option given the amount of short term noise (positioning). I`ve read articles where people are recommending buying Altaba -- AABA over BABA given AABAs steeper discount to its NAV. Either way, its hard not to buy into a secular growth story.
Management is calling for 60% revenue growth in FY19--and this is well ahead of market expectations of 40% growth. 60% growth (50% excluding the consolidation of food delivery platform Ele.me and Cainiao) further validates the underpinning network effect for the company. Analysts are now closely watching the retailer's aggressive expansion into new categories (fashion, CPG) and verticals beyond e-commerce, such as local services and entertainment.
Continuing tariffs are plaguing an already weakening China economy. Started off the day up on earnings, now in the red. https://www.smarteranalyst.com/anal...reiterates-bullish-stance-alibaba-baba-stock/
Weekly chart Looks like it's around a pretty good zone to buy the dip. There's an upchannel where it is testing the support line.
This is actually a very interesting stock here. The market melt down has taken most other stocks way lower, BABA is not bad!
