ALIBABA GROUP HOLDING-SP ADR (NYSE:BABA) is showing promising signs of setting up for a breakout.

ALIBABA GROUP HOLDING-SP ADR (NYSE:BABA) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:BABA.

What is the technical picture of BABA telling us.

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.

We assign a technical rating of 10 out of 10 to BABA. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, BABA is showing a nice and steady performance.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• Looking at the yearly performance, BABA did better than 97% of all other stocks. On top of that, BABA also shows a nice and consistent pattern of rising prices.
• BABA is one of the better performing stocks in the Broadline Retail industry, it outperforms 100% of 31 stocks in the same industry.
• BABA is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so BABA slightly outperforms the market at the moment.

Check the latest full technical report of BABA for a complete technical analysis.

How does the Setup look for 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 BABA this score is currently 8:

BABA has an excellent technical rating and 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 very little resistance above the current price. There is a support zone below the current price at 132.22, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for BABA in the last couple of days, which is a good sign.

How to trade BABA?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

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.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

This article should in no way be interpreted as advice. 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.