Here’s your plan of action for Alibaba (BABA) (March 14, 2017)
BABA SP-500 BABA
Lets get right to it here; Alibaba ( NYSE:BABA ). This is a stock that yesterday, on Monday, during the day, solid breakout above 105.00. But then the stock pulled back and closed right around 105.00. I looked at this and I think the breakout is still intact. Then I see what happened today, I still think the breakout is in intact. If you are TIMING this then sell options don’t buy them. If you are not timing it then just own the stock and keep about a 5 percent loss, maybe even an4 percent stop-loss. This stock is still trading just a little bit below, you can see it, a little bit below 105.00. It is in a tight range.
The thing that is notable to me is look at the intraday lows, they are all essentially higher than the last. This stock is still being bought on any kind of weakness. So with the kind of lousy day that we had in the market, drifting down, Alibaba ( NYSE:BABA ), I will cut it some slack for trading like this. If there was anything wrong with the stock, frankly, it would be down a lot more. I just think this is waiting for the market to get a lift and this stock is going to blast through 11.00. So stay long the stock. Certainly if the stock starts rallying above 106.50 then that would be a buy signal to either increase your position size. Or if you are just looking to buy, to take an initial position on this breakout.
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