What's going on moon gang, i hope you're having a fantastic day in this video, i will be discussing alibaba because its stock is finally starting to bounce. Since the selloff in early november, i will be laying out the key areas of technical support and resistance. So we know what to watch for as things develop, but before i dive into all that, if you're new to the channel don't forget to join the moon gang by hitting the subscribe button, i'm attempting to hit 5 000 subscribers by the end of this year and Your help with that would be truly appreciated and, as always, if you enjoy this video, don't forget to drop a like, because it really helps with getting it in front of other people who may be interested, and now that i got that out of the way. Let's get started before we take a look at the charts.

I want to quickly bring your attention to this article that was recently published on business. Insider ray dalio's hedge fund poured about half a billion dollars into alibaba, along with coca-cola and walmart. For those of you who don't know ray dalio is a well-respected investor and is essentially a wall street legend. He founded the world's largest hedge fund bridgewater associates, which has 140 billion dollars in assets under management.

Obviously you don't get to that point. Unless you get things right more often than you get them wrong, which is great news for us alibaba investors, because he now owns a position with 392 million dollars in the company and trust me. You don't make that size of a bet unless you're very confident in their future. Now i'm well aware that this doesn't mean that the stock has to go up, but it does make me more confident in my bullish thesis.

I don't think it's a bad idea to mimic someone who has had so much success in the stock market anyway. Just some food for thought. The third trading week of november is now over and alibaba closes out with a bang by gaining 4.2 percent on above average volume. Thus far in november, alibaba is down just over 11, but, as you can see, it looks as if it's finally starting to bounce alibaba trades under the ticker b-a-b-a and the stock is sitting just below 271 dollars at this price level.

That means that alibaba has a market cap of 700 billion and, to give you a little bit of perspective, it's commonly compared to both amazon and jd.com. Amazon has a market cap of 1.5 trillion, while jd has a market cap of 113 billion, so alibaba is right in the middle. Over the past week, alibaba is up 3.9 over the past three months. It's down two percent, but from the start of the year until right now it is up 27.

If you've been keeping up to date with my alibaba videos, you will be familiar with the current technical situation for those of you who are new, welcome and here's a quick recap from 2019. Until now, alibaba has been in a clear bullish trend with higher lows and higher highs. More recently, in july, the stock was caught in this consolidation wedge, which led to a breakout and a new relative high at the key psychological level of 300. From there in early september, there was a sell-off which aligned with the sell-off in the overall tech market and support was found at 268, which was the start of the wedge in july.

Alibaba had a failed bounce attempt up to 283, which led to 268 being reaffirmed from there the stock rallied to the current all-time high of 319. This brings us to november, where things were not ideal, if you're an investor, this sell-off was prompted by new regulation issues that alibaba is facing in both china and the u.s. But on more of a positive note, the most recent earnings announcement on november 5th was a bullish one, let's zoom in a bit to see what's been going on this past week, alibaba broke down below this trend line that was from july and august, but then the Bull camp managed to recapture it and push the stock above the previous support of 268 and even above the other trend line. If this bullish momentum continues and the stock can break above 272, the next region of resistance would be this gap fill between 280 and 290, which also includes the relative high of 283 from mid-september, which would be a gain of 4.7 percent, then above that would be The previous high and key psychological level of 300, which would be a gain of over 10, and for those of you who are curious to get back to the all-time high of 319.

That would be a gain of 18. But if this ends up becoming a repeat of september and the stock is smacked down, the first support i would be looking at would be the recent low of 252, which would be a drop of 6.6 and if the bears pushed the stock even lower. I would then be watching this region of support between 246 and 241, which would roughly be a decline of 10 percent. Personally, i believe that this bullish scenario is much more likely at this price level.

I think that the company is fundamentally undervalued and at this moment in time i am not incredibly worried about the regulation issues and from a technical perspective. I really like how the bull camp was able to recapture 268 in this trend line with relative ease, and if you take a look at the rsi, the stock has much more room to run. If you ask me, it's just a matter of time before more and more investors realize that they could hop in at a great price, before alibaba returns to a new all-time high. Now, let's switch things up to the 4-hour chart, so we can get a more detailed view of what's been going on on this time frame.

You can see that there really isn't much to stop alibaba from shooting up to 280 if it can clear 272., above that there is the previous resistance of 283, but personally i'll be watching 290 in the short term, because that would represent a gap fill so basically Over the next couple trading days, the key battle will take place between 272 and 268. If the stock is pushed above 272, we will be heading to 280, but if the stock breaks below 268 it will most likely return to the 250s. Now, i'm not saying that this will happen and in fact i think it's unlikely, but if the stock returns to the area between 241 and 246, that would be an excellent buying opportunity. My previous alibaba video, i announced that i bought shares at 255..

I decided to do this before this region because i saw bullish divergence in the rsi. Even though the stock was making new relative lows, the rsi wasn't so i thought a bounce was coming in all honesty. This bounce came earlier than i anticipated because i thought both buyers and sellers would be attracted to the price level of 250 dollars, but hey that's stock trading for you, you will never be perfect moving forward. I am hoping for continued bullish momentum and a breakout, but if the stock ends up getting rejected, i would love the opportunity to buy more shares between 250 and 240.

Whatever shares, i end up picking up i'm planning on holding them for years to come, because i believe that alibaba has a very bright future. It is a technology giant with access to one of the largest markets on this planet. So i really like my odds as things continue to develop, both fundamentally and technically, with alibaba i'll make sure to keep you updated in future videos and also keep you posted on. If and when i buy more shares of the company.

So make sure you have your notifications turned on thanks for making it to this point in the video. I appreciate your time and i really hope that you found some value in it. As a quick reminder, i am not a financial advisor, so i would highly recommend that you do your own research. I would love to know your thoughts on alibaba stock in a comment below.

Do you think that the bounce will continue or do you think that it's a fake out and as always, 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 engagement really helps me out thanks for watching and until next time best of luck in the markets. You.