📉 Catching the Dip: A Strategic Entry Point for Alibaba (BABA-W, 09988)
Alibaba’s Hong Kong-listed shares (BABA-W, 09988) are showing signs of a potential bounce after a sharp decline. With the stock trading at 134.40 HKD, down 4.00%, savvy traders are eyeing an attractive dip-buy opportunity around the 133.50 – 134.00 HKD support zone.
SG SDR @ 4.61
US ADR @ $138
📊 Why This Entry Makes Sense
Today’s price action reveals a clear downtrend, with Alibaba falling from 140.00 HKD to an intraday low of 133.90 HKD. Despite the selling pressure, the 133.50 – 134.00 HKD range is holding firm—a sign that buyers may be stepping in to defend this level.
From a technical perspective, this zone aligns with intraday support, making it a low-risk, high-reward entry point if the price stabilizes. Additionally, the Relative Strength Index (RSI) sits near neutral territory (47-51 range), suggesting the stock isn’t yet oversold but could be poised for a rebound.
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📈 The Trade Setup
• Entry Point: 133.50 – 134.00 HKD (on price stability or slight bounce)
• Stop Loss: 132.50 HKD (to protect against further downside)
• Take Profit: 137.20 HKD (first resistance level and today’s open)
• Risk/Reward Ratio: ~3:1 (favorable balance of risk vs. potential gains)
This setup allows for a tight stop-loss, minimizing downside while providing room for upside potential if the price recovers.
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