September 24 Chart of the Day - Alibaba
Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.
Alibaba (BABA) has delivered what traders have been waiting for — a confirmed breakout.
After years of grinding lower from highs near $319, the stock has finally pushed through resistance, signaling that buyers may be taking control for the first time in a long while.
We'll review the chart from a price action perspective to identify potential levels of interest in both directions.
The charts highlight key levels where investors and traders alike will be watching closely.
Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.
When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.
As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next price moves for this chart.
Since May 2023, we've showcased over 600+ Charts of the Day and provide a Free Quick Start Guide to traders with ambitious income goals for our patent-pending NeuroTrading Method™.
Monthly Chart
On the monthly chart, BABA carved out a deep base after bottoming near $57. This month’s surge carried price above $167, clearing a major hurdle and confirming the breakout.
As long as BABA holds above that level, higher targets back toward $188 and even $219 come into focus.
With plenty of volatility traders have had much to be happy with while investors seemingly have been disappointed.
This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a stock’s short to mid term outlook.
Weekly Chart
On the weekly chart, the structure sharpens. The breakout is confirmed with strong volume and momentum, clearing multiple layers of resistance in a single move.
For traders, the key now is whether BABA can build on this momentum and establish new higher lows on any pullbacks, which would cement the breakout as the start of a larger trend reversal.
Bottom line: BABA has confirmed its breakout. The path of least resistance is now higher, with bulls watching $188 and $219 as next upside targets.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We’ve combined Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.
With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.
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.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones
- 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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