BABA pushes through key resistance level
Alibaba Group Holding Limited (BABA) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
BABA ended the week -0.46% lower at 180.01 after gaining $2.82 (1.59%) today. Today's closing price of 180.01 marks the highest close since August 3rd. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (BABA as at Aug 10, 2018):
Friday's trading range was $5.70 (3.25%), that's above last trading month's daily average range of $4.55. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly above average.
In spite of a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle.
Breaking through the key resistance level at 177.49 today, it is now likely to act as support going forward. Prices are trading close to the key resistance level at 182.04. Alibaba ran into sellers again today around 180.45 for the third trading day in a row after having found sellers at 180.63 in the prior session and at 180.18 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 180.63 where further buy stops might get triggered.