Friday, 1 May 2015

BABA - battling to hold the floor

With the main market climbing into the weekend, Alibaba (BABA) saw some chop, settling -0.2% @ $81.15 (range 82.25/80.12). BABA is clearly battling hard to hold the critical $80 threshold... under which there is nothing but empty air to the IPO price of $68. Earnings are due early next Thursday.

BABA, 60min

BABA, daily


Suffice to say... unlike the overpriced momo nonsense of AMZN, TSLA, FB, and even NFLX, BABA is at least a hugely profitable company.

Price action since early March has been one of solidifying a core floor of $80.00.

If the market likes earnings next week, first upside target is the gap zone of 91-97. The giant $100 threshold would be a valid target on any break above declining trend/resistance.. which next Thursday will be $87.

*I will consider going long BABA (as an earnings play) next week. However, on any basis, if BABA were to lose the $80 threshold.. it would bode VERY badly for Thursday earnings.