What's going on moong, it is time for an update on alibaba. In this video i will be doing a technical breakdown of alibaba stock, ticker symbol baba and i will be mapping out the key levels of support and resistance. So we know what price levels to watch between now and the end of the year before i get into all that, though, if you're new to the channel don't forget to join the moon game by hitting the subscribe button, i'm working to hit 10 000 subscribers as Soon as possible, and your help with that would be truly appreciated and, as always, if you enjoyed this video, it would be great if you could drop a like, because it really helps with getting it in front of other traders and investors who may be interested. And now let's get started alrighty then, as we are getting close to the end of the trading day and week.

Alibaba stock is just above 264 dollars and it's slightly down on the day over the past week month and three months, alibaba is in the red, but from the start of the year until right now it's up almost 25, and here is the current technical situation that Alibaba stock is in for those of you who are new to the channel. Here's a quick summary from july until mid-august. The stock was in this bullish pennant. Where is making lower highs and higher lows, and then this was followed by a bullish breakout to the key psychological level of 300.

After posting, this new relative high alibaba did sell off and eventually found support at 268, which was the exact start of this bullish. Pennant from there there was a bounce up to 284 and when that was rejected, 268 was reaffirmed and from there the bull camp pushed alibaba up to its current all-time high of 319. So, to sum it up from march until the end of october, alibaba stock was in an upward trend and it was consistently posting higher lows. Unfortunately, this trend was broken in november.

The stock went from above 300 all the way down to almost 250. At one point, this decline happened because of two key reasons: first, the ant ipo, which is alibaba's financial service, was delayed and that most likely happened because jack ma made some disparaging comments about the chinese government and then, after that, the chinese government hit the company with Anti-Trust regulations and at one point we saw this gap down from 291 to 280. after bottoming out right. Around 252 the bull camp pushed the stock back up to the start of this gap right around 280, and then the u.s government voted that chinese stocks would be banned from u.s markets if they don't comply with our auditing.

This caused another gap down from 275 to 268.. Now i covered this whole delisting thing in more detail in previous videos, but to quickly summarize it i don't think you have to worry about alibaba. First of all, they have three years to comply with the new auditing rules, and on top of that, the hong kong branch of pwc has already been doing alibaba's financials since the late 1990s. So i'm pretty confident that most of their things are already in order, and they have more than enough time to get everything in order, if need be.

In all honesty, i'm much more worried about the political grudge match that jack ma has going on with the chinese government, because well clearly, the government has quite a bit of power to hurt your business anyway. Thus far in december, the stock has essentially been consolidating at one point. It did get above. The previous support turn resistance at 268 and then halfway through this gap region, it was rejected right at this trend line, and now we are trading at 264..

Over the past 10 days, alibaba stock has essentially been consolidating in the eight dollar range between 260 and 268, and you can even see that down here in the rsi, because it's essentially going nowhere now. Eventually, this period of consolidation will turn into expansion and if the bulls win, the first resistance, i would recommend paying attention to would come at the top of this first gap at 275 past that we have the bottom of the second gap at 280. And after that, i would recommend watching 290. from the current level.

Those would be gains of four percent six percent and ten percent respectively. On the flip side, though, if the bears end up winning this fight, the first support i would watch would come at the last relative low of 260, which would be a drop of 1.5 percent past that we have 252, which would be a decline of 4 percent And past that we have this region of support, which is the start of the bullish pennant from july, which would be a drop of roughly eight percent. As a quick side note, even though i think it's unlikely that alibaba will drop to this region, if that happens to play out, i think it would be an excellent investment opportunity and i would be loading up on as many shares as i possibly could now to Get a better idea of what might happen with alibaba over the next few days. Let's check out the four hour chart before we jump into this time frame.

I wanted to quickly mention that the name of this charting software is tradingview and for those of you who are interested, there's a link to a free 30-day trial in the description of this video. If you decide to sign up, it is a great way to support this channel anyway, back to alibaba, when you include pre and post market trading, you get this new top blue trend line. That alibaba has been rejected at one two three different times and we're about to make our fourth test over the next few trading days. I would recommend paying close attention to this trend line, because if alibaba is rejected once again, there's a pretty good chance, it could drop to 252.

But if this time the bulls can prompt a breakout, i would feel very confident about 276 and past that i would be looking for 291. overall from late october. Until now, these swings have been getting smaller and smaller, and, most recently we have a new higher relative low. So if we can get above this trend line, i think that the bull camp will be back in business.

On more of a personal note, i am invested in alibaba myself, and my cost basis is right around 255, and on top of that, i also own call options on the stock. The strike price for those contracts is 300 and the expiration date is january 21st. In terms of the shares, i'm planning on holding those for years to come, because i believe that alibaba has a bright future and things will be even better when it stops fighting with the chinese government in terms of the call options, i'm planning on taking those profits. As soon as both of these gaps are filled moving forward, at least in the short term, i would say that you should pay attention to how alibaba reacts to this trend line and in more of a general sense, i would recommend paying attention to these levels of Support and resistance and watching for divergence to be formed in the rsi.

As things currently stand, i am bullish on alibaba stock and i think that there will be a breakout in the near future as things continue to develop i'll make sure to keep you updated in future videos so make sure you have your notifications turned on. I would really love to know your thoughts on alibaba. Would you consider investing at an upcoming support, say 260 or 252? Let me know in a comment below and if you have any questions feel free to post those as well, and i will answer them in future. Videos, 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.

All that support really helps this channel out and as a quick reminder if you're new to trading or if you're, just looking for a new trading, account, there's a link to the weeble trading platform. In the description of this video, the company is currently running a promotional deal where, if you sign up and make a deposit of 100, you will be awarded four free stocks. So it's definitely worthwhile to check out thanks for watching and until next time. Best of luck in the markets, you.