Don't Ignore This Chart!

Alibaba (BABA) Plants A Doji Near Support

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Alibaba (BABA) has been here before. After a month long pullback on the IPO, Alibaba broke out for a 40% gain. After slowly winding back, BABA gapped down on earnings and has come down to test the previous low. While Alibaba has intraday moves below $85, it has only had one close at $84.95. That was the lowest close for Alibaba. So that brings today's chart into play. Today's intra day range was so tight that it generated a very short low range doji.

This is the lowest area of closes on the chart. I used the new volume by price feature to define the total volume at each price bar. It would appear the last time down here we ran out of sellers. Here is how tight the 30 minute chart looks on Alibaba.


 Plan your trade, trade your plan. When I looked at Twitter (TWTR), it gapped down hard (25%) when previous support didn't hold. 

Good trading,
Greg Schnell, CMT

 

 

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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