Tuesday, December 15, 2015

Bullish Breakout Stocks: Sunrun: RUN, Hershey: HSY, Solar City: SCTY

Alibaba Group Holding Ltd (NYSE: BABA)

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:
1-year chart of Alibaba (NYSE: BABA)
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.

Gold Speculators Raise Net Bullish Positions For 1st Time In 6 Weeks

Weekly Large Trader COT Report: Gold

Gold Speculators Chart
Gold net speculative positions totaled +19,623 contracts
GOLD Non-Commercial Positions
Gold speculator and large futures traders increased their gold bullish positions last week after five straight weeks of declining positions, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday. (more)