BABA Chart Analysis


Analysis done on five minute and daily candles. Major indexes are facing correction fears, but BABA is way ahead of the charts considering the decline it has had the last quarter. American investors are already skeptical of investing in Chinese companies due to a history of business misconduct and improper earning reports, and now with government regulation striking down; we’re seeing the impact. BABA in itself is a great company, and their earnings prove they have a strong future, but we’ve been getting warnings from the SEC about investing in Chinese listed companies, making it a high risk investment long term. Now with Evergrande’s new default potential, stocks in the Chinese listed sector are likely to hurt even more. If you are looking for a high risk position type trade, take in mind the overall market conditions along with economic health between the US and China. The daily chart provides the strong, more critical support and resistance points. While the five minute chart gives short term entry supports and resistances.