Will ALIBABA GROUP HOLDING-SP ADR breakout?

We've identified ALIBABA GROUP HOLDING-SP ADR (NYSE:BABA) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NYSE:BABA for further developments.

Technical Analysis Observations

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Overall BABA gets a technical rating of 8 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, BABA is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that BABA is one of the better performing stocks in the market, outperforming 77% of all stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• BABA is an average performer in the Broadline Retail industry, it outperforms 57% of 34 stocks in the same industry.
• BABA is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so BABA is lagging the market.
• In the last month BABA has a been trading in the 89.01 - 102.50 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of BABA contains the most current technical analsysis.

How does the Setup look for NYSE:BABA

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:BABA this score is currently 8:

Besides having an excellent technical rating, BABA also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 100.55. Right above this resistance zone may be a good entry point.

Trading setups like NYSE:BABA

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.