We need to talk about alibaba. The market gods just presented us with an amazing opportunity if you're already invested in baba or if you've been waiting for the perfect moment to buy shares of the company. I have some great news for you. My name is matt and on this channel we talk about stocks trading and investing in this video.

I will be sharing everything you need to know about the massive announcement that just came out about alibaba. I will also be discussing the position i personally created to take advantage of this bullish situation and, of course, stick around until the end, because i will be doing a full technical breakdown of alibaba stock i'll, be mapping out the key price levels that will be in Play over the next few trading days before i get into all that, though, if you enjoy this type of stock market content, don't forget to join the moon gang by hitting the subscribe button. My goal is to hit 10 000 subscribers by the end of january, and your help with that would be truly appreciated. Also, if you want five free stocks, make sure to check out the links to both weeble and robin hood, the promotional deal will be ending on january 15th and now that i got all that out of the way let's get started.

So what is all the hubbub about? Why am i so excited about this opportunity? Well, to give you a bit of a background from late october of 2020, until now, alibaba stock has really been beaten down. The ant group ipo was delayed. The company was hit with regulation issues from the chinese government and on top of both of those, the company was hit with regulation issues from the u.s government. In fact, there was even a chance that alibaba could be delisted from u.s exchanges.

Fortunately, for us we no longer have to worry about that last issue. Americans won't be banned from investing in alibaba, tencent and baidu. It was just reported today that the u.s government is expected to let americans continue to invest in chinese technology giants, alibaba, tencent and baidu. After weighing the firm's alleged ties to china's military against the potential economic impact of banning them, it is well known that the stock market really doesn't like risk, and now that this particular risk of de-listing is gone.

That is very good for these three companies. Alibaba was among dozen companies being examined for inclusion in a defense department list of firms deemed to support china's military intelligence and security services. But now we can all breathe a sigh of relief thanks to the treasury secretary mutin, because the u.s no longer plans to add these three firms to the list. Now, as i already mentioned, this is definitely a positive development for tencent, baidu and alibaba, but i do believe that alibaba stock will disproportionately benefit from it, because the stock was already severely beaten down and it's definitely overdue for some sort of rebound.

If you're watching this you're, probably thinking that this news is great and all but you're - probably more so interested in, how can you make money off of it? So now that you know more about the alibaba catalyst, i want to share the exact details of a position. I just created to hopefully take advantage of this situation. I know a lot of people in the youtube finance world speak more in general terms and somehow their portfolios are always magically in the green. Because of that, i thought it would be more useful if i was as transparent as i could possibly be recently.

I posted a video where i shared the details of a portfolio i created at the start of 2021. If you've seen that you know that i've already been invested in alibaba, i thought that the market severely overreacted to what was going on with the stock and it's still a pretty great company baba trades under the ticker baba and the stock is currently trading. At thirty. Seven dollars, as i said, i am already invested in alibaba.

I own two shares and my average cost per share is 238, which means it's roughly four percent of my public portfolio. After today's news broke, i more than doubled down on the position by buying three call options. The strike price is 250, the expiration date is january 22nd, and the premium that i paid per contract was 85 2.85. That does mean that i'm currently down about 12 on the position, but i feel pretty confident that as more and more people learn about this recent alibaba update that it will trend in my favor.

Obviously, there's risk in every stock market play especially when you're dealing with options by their nature. They are leveraged at a rate of 100 to 1. So, yes, you can make a lot of money, but you can also lose a lot of money. In all honesty, i am pretty excited about this particular play.

The stock was already beaten down. We now have a positive catalyst, and on top of that, i really like what i'm seeing in the charts alrighty, let's get into the details that will help you make some money, don't forget to show your love for both alibaba and the moon gang by dropping a Like your support is truly appreciated, alibaba really wasn't having the best day before the announcement was made and then, after that, the stock shot as high as 240 dollars and when the market closed for the day it was at 234 and it gained 4.3 percent. Thus far in 2021, alibaba is up 1.5. This is the current technical situation that alibaba stock is in for those of you who are new to the channel.

Here's a quick recap of what's been going on from the start of june until the start of july alibaba had a pretty nice rally from 197 all the way up to 268. from there it sold off and found support at 240, and then we saw a lower High higher low and it formed this triangle in trading - this is referred to as a bullish pennant and that's because it commonly breaks upward and that's exactly what we saw and then we saw a new relative high just below 300 from there. There was a sell-off that caught itself at 268, which was the exact start of this bullish pennant. This was followed by a failed bounce attempt and 268 was reaffirmed and from there alibaba rallied to its current all-time high of 319.

from march of 2020. Until late october of 2020, alibaba was on a very nice run. Unfortunately, when november started that marked the start of many problems for the stock, the ant group ipo was delayed. Chinese regulations, us regulations, the stock kept selling off, and then things got really bad.

On christmas eve, when it was announced that the people's bank of china would be investigating alibaba for monopolistic practices, since then, the stock has corrected a little bit, but it's mainly been range bound between 225 and 240.. Originally, this region in red was in green because it was pretty important support, but after the sell-off in training, previous resistance turns into support and previous support can turn into resistance, and that's exactly why the stock has been battling it out right at 241., if the bull Camp can successfully follow through on this catalyst, as i'm expecting them to. They will first have to get above the resistance right around 243 and from there. I would expect it to shoot up right to the key psychological level of 250, which is exactly where the stock found support in november and december.

Unfortunately, the top of this region of resistance also aligns with this white trend line, which means that the resistance will be bolstered and the bull camp will definitely have their work cut out for them to get it above there now. I do think that this will eventually happen, but it could take some time once the bull camp does get it above. There pay attention to 268 and past that we have these two gap fill regions. As of now i am very much favoring.

The bull camp. I mean it bounced off of this support at 212. Since then, we've been seeing a higher low. The rsi is now coming out of the very oversold territory, but with all that being said to be a good, balanced, technical analyst, you should also be aware of the upcoming levels of support.

We have one at 235 past that we have the most recent relative low of 220 and from there we have 212.. I definitely want you to be aware of these levels, but i'm very much favoring a positive outcome now to get a better idea of what alibaba stock might do over the next few trading days. Let's check out the four hour chart. I think that this time frame does the best job at showcasing.

Why i'm currently so excited for alibaba i've included, pre and post market trading, and when you do that, you get this pretty apparent blue trend line that the stock has had a very difficult time. Breaking out above, it's been rejected many many times from late october, all the way up until now - and it looks like the stock is finally trying to break out to me. This is such a big deal because from a technical perspective, it's something that hasn't happened in months and now from a fundamental perspective. The bull camp finally has a reason to buy.

I don't think it's any coincidence at all that today the stock closed exactly at this trend line, it's setting up an epic battle between the bulls and bears. If the bull camp can manage to keep it on the top side of this trendline, they clearly have their work cut out for them right at 241, which is where the stock was rejected on four occasions this year alone, if they can get the stock back up Into this region on a decent amount of volume, i think it'll be pretty much clear sailing up to the 250 252 area. If this particular scenario were to play out, i would be expecting a relatively high rsi and most likely a rejection, but this time we would see another higher low, which would build a new support and then the stock would have what it needs to shoot. Even higher, of course, though, you might as well throw this plan out the window if the bears end up winning the fight at this trend line because from there they would most likely knock the stock back down to 220, and if the bulls can't save it, there We'd better say hello to 212..

I'm not saying this to scare you at all, i'm just trying to fairly lay out the situation that alibaba is currently in. Personally, i do favor the bull case scenario and i will personally be watching how the stock reacts to this trend line and the first resistance just above 240 dollars. Don't forget about the bigger picture. Alibaba is a giant technology company with access to one of the largest markets on this planet.

There is a very strong argument to be made that from late october, up until now, the stock has been unfairly beaten down. Now that we have a positive catalyst, it makes me very confident that there will most likely be a strong rebound. I would truly love to know your thoughts on alibaba personally, i'm bullish on the stock in both the short and long term. With that being said, how do you think that the stock will react to the news of not being banned and what's your price target on alibaba at the end of 2021? Let me know in a comment below also as a quick reminder: if you want five free stocks, make sure to check out the links to both weeble and robin hood.

In the description of this video, the promotional deal will be ending on january 15th, and not only do you get free stocks, but it's a great way to support this channel. If you enjoyed this video, don't forget to drop a like, and if you haven't already don't forget to join the moon gang by hitting the subscribe button. I really appreciate you spending a portion of your day with me thanks for watching and until next time. Best of luck in the markets, you.