Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Alibaba Returns to the Scene of the Crime

by June 8, 2024
June 8, 2024
Alibaba Returns to the Scene of the Crime

Chinese stocks wet on a tear from mid April to mid May with the China Large-Cap ETF (FXI) gaining some 40% and breaking its 200-day SMA. FXI then fell back over the last few weeks. This surge and pullback created a potential opportunity because some stocks returned to their breakout zones. These so-called throwbacks offer traders a second chance to partake in the breakouts. Today’s example will show Alibaba (BABA), which was featured on ChartTrader this past week.

The chart below shows Alibaba with the 200-day SMA (red line) and the Trend Composite in the indicator window. On the price chart, BABA found support twice in the 67-68 area and broke resistance with a surge in May. The two lows in this area formed a Double Bottom and the breakout reversed the downtrend. Also notice that BABA broke the 200-day SMA.

Traders who did not catch the breakout have a second chance because BABA returned to the breakout zone in early June. This is a classic “throwback” to broken resistance, which turns into support. The stock also returned to the 200-day SMA and the decline retraced around 61.8% of the prior surge. This retracement is normal for a pullback within a bigger uptrend. Overall, I see a Support-Reversal Zone in the upper 70s and I am watching short-term resistance at 80. A breakout here would reverse the short-term downswing and argue for a resumption of the bigger uptrend.

As noted above, the indicator window shows the Trend Composite, which aggregates signals in five trend-following indicators. It moved to +1 in early May, which meant three of the five indicators triggered bullish signals (3 – 2 = +1). Two more indicators turned bullish by the end of May and all five are now bullish (+5). My strategy is to look for tradable pullbacks within bigger uptrends. The Trend Composite signals a long-term uptrend and the decline to the upper 70s is a tradable pullback. Note that this indicator is part of the TIP Indicator Edge Plugin for StockCharts ACP (click here).

ChartTrader at TrendInvestorPro featured BABA and two other Chinese names last week. Recent breakouts in several crypto-related names were also featured because their breakouts signaled a continuation of their bigger uptrends (IBIT, COIN, BLOK). Reports and videos are published twice per week. Click here to learn more.

//////////////////////////////////////////////////

0
FacebookTwitterGoogle +Pinterest
previous post
AI enabling Iran’s crackdown on women as authoritarian regime uses tech to enforce head covering
next post
Week Ahead: Despite Pullback, Breadth Remains A Concern; Nifty Stays Prone To Retracement

You may also like

Does the MACD Histogram Hold the Secret to...

October 18, 2024

MEM TV: Best Way To Participate in Stronger...

February 10, 2024

How I Find Up-trending Stocks Every Week (Step-by-Step...

June 3, 2025

The Perfect Starter to Build Your Daily Market...

September 23, 2022

Wall Street’s Hunger Games Are Now Complete

May 21, 2023

The Ord Oracle October 30, 2023

October 31, 2023

Week Ahead: NIFTY to Face Monthly Derivatives Expiry...

May 21, 2023

The Downside to This Up Market

May 27, 2023

U.S. Oil Reserves Drop to 40-Year Lows

June 28, 2023

Bearish Engulfing Pattern Marks Top For NVDA?

March 9, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Friday Feature: Incubate Debate

      June 6, 2025
    • Risch urges ‘top to bottom’ USAID spending review after waste, fraud exposed

      June 6, 2025
    • Universities in Libertarian Land

      June 6, 2025
    • Elon Musk may speak to Trump aides in push to calm feud

      June 6, 2025
    • Everyone Talks About Leaving a Better Planet for Our Children: Why Don’t We Leave Better Children for Our Planet?

      June 6, 2025
    • MARK HALPERIN: Democrats try to construct a Frankenstein candidate while JD Vance gains momentum for 2028

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,013)
    • Politics (15,545)
    • Stocks (3,130)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved