Updated: Aug 1
The verdict is finally out for Alibaba (HK:9988; NYSE:BABA).
Attached is the chart on HK:9988 and a Buy Recommendation report from CIMB dated 12/4, setting a target price of HK$341. Most other research firms look to be maintaining their bullish outlook on the stock as well. The fine seems like a slap on the hand of the tech giant and gave investors the clarity to the end of this episode.
From charting perspective, volume analysis indicated higher volume on up-days than down-days since the start of 2021.
KST showing upside momentum and ADX turning up above 20 usually point to possible start of a new wave. Given the positive news and Alibaba failing to break below 2020's low in the recent sell-down, it is likely that the new wave of move should be to the upside.
2 possible entry points to look out for is for price to break above the downtrend line (purple) for breakout confirmation, OR to wait for %R indicator to drop to oversold level. Short-term traders can take guidance from the chart and watch out for the support of HK$200 and resistance of HK$300.
Do join our Telegram channel https://t.me/stockwhisperersg* to receive free & interesting trading/investment ideas across US/HK/SG!
This is an opinion piece. Please always do your own due diligence on the company's fundamentals & assess if the Fundamental / Technical analysis opinions are applicable to your trading/investing needs.
Proudly brought to you by StockWhisperer SG
*By onboarding to our services as per above, you'll have indicated that you would like to be in my Email/Telegram subscription list and/or for me to contact you for potential marketing, advertising and promotional purposes, overriding any DNC registration.