FREE Guide: 6 Fibonacci Types that Create the Most Precise Price Levels, Targets, and Reversal Zones

May 14 Chart of the Day - Alibaba

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

Alibaba Group Holding Limited (BABA) stock is trading lower Tuesday after the company reported disappointing quarterly results. 

Net income plunged 86% Y/Y to $453 million due to net loss from its investments in publicly traded companies during the quarter. Adjusted net income declined 11% Y/Y to $3.38 billion. 

Company management said "yada yada yada..." so we wanted to review their chart from a price action technical analysis perspective.

Monthly Chart 

Baba monthly price action technical analysis review

On the monthly chart we can see that after setting its $319.32 all time high (ATH) back in 2021 price fell dramatically over time and seemingly found a bottom and bounced around the $60 area.

Since then, price has been trying to make a series of higher highs and higher lows but that streak is close to being in jeopardy.

Weekly Chart

Baba weekly price action technical analysis review

On the weekly chart we can see with much more clarity the recent up trend and the series of higher highs and higher lows this calendar year.

The $85 area before the earnings drop was potentially an area of confluence that could have set another higher high before price decides what to do next.  Time will tell if the next bounce / cycle back up truly sets another higher low to keep the recent uptrend intact.

Trading at $78.65 earlier today price may have an upcoming decision to make after recently fading from previous support/resistance sitting just below an impulse bear Fibonacci 50% retracement level.

We've layered in traditional Fibonacci levels in both directions as well as support/resistance, and trend to identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.

Take a look at the charts and let us know what you think.  

We'd like to hear from you in the comments sections. 

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