Stock of the day: Alibaba

I know everyone’s attention is on NVIDIA after its earnings report, and we’re anticipating a drop today. However, since we covered NVIDIA yesterday, let’s shift our focus to another instrument. Today, I’d like to discuss Alibaba, which has been trading sideways for the past few months. This sideways movement has formed a symmetric triangle pattern, clearly marked with black lines on the chart. The triangle consists of an upper resistance line and two support lines—one for a smaller triangle within the broader pattern.

Recently, the price has been trending lower, and it’s likely that we’ll see a test of the lower line of the triangle, possibly even touching both support levels. The sentiment has turned negative following a bounce off the upper resistance line. However, it’s crucial to remember that the decisive trading action in a triangle pattern usually occurs after a breakout. A break above the upper line of the triangle would generate a strong long-term buy signal. Conversely, a break below the lower line would signal a move to sell.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-alibaba-9