Alibaba Group Holding Ltd (BABA)

[ITMS]

Alibaba $BABA Falls Again, Where Is The Bottom?

Recently, the leading Chinese ADR's have come under some severe selling pressure on the back of the U.S. / China trade wars. The important and highly followed Shanghai Index (Chinese stock index) is trading down by more than 18.0 percent this year and still looks to be weak on the charts.

The top Chinese ADR is Alibaba Group Holding Ltd (NYSE:BABA). The stock peaked out on June 5, 2018 at $211.70 a share. Since that high pivot in the Chinese giant the stock has declined by more than $54.00 (-25.6%) a share. Earlier today, Alibaba Chairman Jack Ma announced that he will be stepping down from his post at the company and the stock is sliding again. Many traders are now wondering where the bottom will be for this stock that is often called Amazon of China. Traders and investors should now watch the $153.00 level. This level is where the stock broke out in August 2017. Often, prior breakout levels will serve as excellent support when retested. Please understand, all Chinese ADR's will be vulnerable until the Shanghai Stock Index finds a low on the charts. For this reason, the way that I will likely play this trade level on the long side will be by using call options.




Nicholas Santiago
InTheMoneyStocks