Stock of the day: Alibaba
16 September 2024
Once again, we're revisiting Alibaba, which has been showing a promising bullish trend recently. It's clear that the summer months in Europe were favorable for Alibaba, with July starting on a low point but ending on a strong note. August followed suit, bringing continued upward movement. Right now, Alibaba is facing a critical moment as it tests a key resistance level after two months of consistent gains. This resistance aligns with the upper line of a symmetric triangle pattern, clearly visible with black lines on the chart.
A breakout above the upper boundary of this triangle would signal a strong buy opportunity. If the price closes above this upper black line, it will confirm a bullish breakout. However, if the price bounces back from this resistance and forms a bearish candlestick pattern, it could be a signal to consider short positions. It will be crucial to observe how the market behaves in the coming days to determine the next move for Alibaba.