{"id":5279,"date":"2024-06-08T12:03:27","date_gmt":"2024-06-08T12:03:27","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/06\/08\/alibaba-returns-to-the-scene-of-the-crime\/"},"modified":"2024-06-08T12:03:27","modified_gmt":"2024-06-08T12:03:27","slug":"alibaba-returns-to-the-scene-of-the-crime","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/06\/08\/alibaba-returns-to-the-scene-of-the-crime\/","title":{"rendered":"Alibaba Returns to the Scene of the Crime"},"content":{"rendered":"
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Chinese stocks wet on a tear from mid April to mid May with the China Large-Cap ETF (FXI) gaining some 40% and breaking its 200-day SMA. FXI then fell back over the last few weeks. This surge and pullback created a potential opportunity because some stocks returned to their breakout zones. These so-called throwbacks offer traders a second chance to partake in the breakouts. Today\u2019s example will show Alibaba (BABA), which was featured on ChartTrader this past week. <\/a><\/p>\n

The chart below shows Alibaba with the 200-day SMA (red line) and the Trend Composite in the indicator window. On the price chart, BABA found support twice in the 67-68 area and broke resistance with a surge in May. The two lows in this area formed a Double Bottom and the breakout reversed the downtrend. Also notice that BABA broke the 200-day SMA. <\/p>\n<\/p>\n

Traders who did not catch the breakout have a second chance because BABA returned to the breakout zone in early June. This is a classic \u201cthrowback\u201d to broken resistance, which turns into support. The stock also returned to the 200-day SMA and the decline retraced around 61.8% of the prior surge. This retracement is normal for a pullback within a bigger uptrend. Overall, I see a Support-Reversal Zone in the upper 70s and I am watching short-term resistance at 80. A breakout here would reverse the short-term downswing and argue for a resumption of the bigger uptrend. <\/p>\n

As noted above, the indicator window shows the Trend Composite, which aggregates signals in five trend-following indicators. It moved to +1 in early May, which meant three of the five indicators triggered bullish signals (3 \u2013 2 = +1). Two more indicators turned bullish by the end of May and all five are now bullish (+5). My strategy is to look for tradable pullbacks within bigger uptrends. The Trend Composite signals a long-term uptrend and the decline to the upper 70s is a tradable pullback. Note that this indicator is part of the TIP Indicator Edge Plugin for StockCharts ACP (click here).<\/a><\/p>\n

ChartTrader at TrendInvestorPro<\/a> featured BABA and two other Chinese names last week. Recent breakouts in several crypto-related names were also featured because their breakouts signaled a continuation of their bigger uptrends (IBIT, COIN, BLOK). Reports and videos are published twice per week. Click here to learn more. <\/a><\/p>\n

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Chinese stocks wet on a tear from mid April to mid May with the China Large-Cap ETF (FXI) gaining some 40% and breaking its 200-day SMA. FXI then fell back over the last few weeks. This surge and pullback created a potential opportunity because some stocks returned to their breakout zones. These so-called throwbacks offer […]<\/p>\n","protected":false},"author":0,"featured_media":5280,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5279","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=5279"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5279\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/5280"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=5279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=5279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=5279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}