BABA rises to highest close ever
Alibaba Group Holding Limited (BABA) Technical Analysis Report for Jan 13, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, BABA finished Monday at 230.55 surging $6.72 (3.0%), significantly outperforming the S&P 500 (0.7%). Today's close at 230.55 marks the highest recorded closing price ever. Trading up to $1.77 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on December 31, 2019, BABA gained 3.62% on the following trading day. 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 Jan 13, 2020):
Monday's trading range has been $4.09 (1.79%), that's far above the last trading month's daily average range of $2.92. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BABA.
Crossing above the upper Bollinger Band for the first time since November 29, 2019, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 215.18 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Alibaba Group. Out of 66 times, BABA closed higher 59.09% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.61% with an average market move of 1.77%.