Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the People’s Republic of China and internationally. It operates Taobao Marketplace, an online shopping destination; Tmall, a third-party platform for brands and retailers; Juhuasuan, a group buying marketplace; Alibaba.com, an online wholesale marketplace; Alitrip, an online travel booking platform; 1688.com, an online wholesale marketplace; and AliExpress, a consumer marketplace.
Take a look at the 1-year chart of Alibaba (NYSE: BABA) below with my added notations:
Over the last 5 months BABA has formed an inverse head and shoulders
reversal pattern (green). I have noted the head (H) and the shoulders
(s) to make the pattern more visible. The stock’s neckline resistance is
at the $85 level (Red). BABA will confirm its H&S if it breaks
through the neckline.
Keep in mind that simple is usually better. Had the inverse H&S
pattern never been pointed out, one would still think BABA was moving
higher simply if it broke through the $85 resistance level.
The Tale of the Tape: BABA has formed an inverse head & shoulders pattern. A long trade could be entered on a break through the $85 level.