BABA closes higher for the 3rd day in a row


Alibaba Group Holding Limited (BABA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team

Highlights

BABA breaks above 20-day moving average for the first time since February 20th
BABA dominated by bulls lifting the market higher throughout the day
BABA closes higher for the 3rd day in a row
BABA runs into sellers again around 196.32
BABA pushes through Wednesday's high

Overview

Moving higher for the 3rd day in a row, BABA ended Thursday at 195.32 gaining $6.76 (3.59%) on low volume, notably underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 195.19, the market confirmed its breakout through the prior session high after trading up to $1.13 above it intraday.

Daily Candlestick Chart (BABA as at Mar 26, 2020):

Daily technical analysis candlestick chart for Alibaba Group Holding Limited (BABA) as at Mar 26, 2020

Thursday's trading range has been $8.72 (4.62%), that's slightly above the last trading month's daily average range of $8.31. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BABA.

One bullish candlestick pattern matches today's price action, the White Candle.

The stock managed to close above the 20-day moving average at 194.42 for the first time since February 20th. Prices are trading close to the key technical resistance level at 202.24 (R1). After having been unable to move above 195.19 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 196.32. The last time this happened on March 20th, BABA lost -2.74% on the following trading day.

Alibaba Group shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.

Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Alibaba Group. Out of 94 times, BABA closed higher 58.51% 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 58.51% with an average market move of 0.52%.


Market Conditions for BABA as at Mar 26, 2020

Loading Market Conditions for BABA (Alibaba Group Holding Limited)...
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