Technical Analysis: Alibaba Group Holding Ltd.

Alibaba Group Holding Ltd. Weekly

This stock has performed relatively poor since it's listing in late 2014 although the wide shaped double bottom pattern that took place in between August 2015-2016 has allowed bulls to build enough sentiment to carry the trend upwards.

The impressive 29% gain made from the breakout in eight weeks after the event did give traders a taste of the potential this stock holds. The full target of this pattern indicates $120 however the pullback started occurring at around $110. '

Price has pierced above the 21 simple moving average for the first time since November with a fairly flat gradient. This comes off the successful retest of the $85 region where the breakout took place.

The MACD managed to stay above 0 and avoid going into negative territory placing considerable edge in favour of the buyers. A confirmed close above the 21 SMA will set in motion a move back to $110.