Shares of Alibaba Group (BABA) continue to pull back off all-time highs. This is no surprise considering smart investors and traders understand how the stock market works with known news. What was the known news? The China and US phase 1 trade deal. Since October 2019, investors have known a phase 1 trade deal was coming. Shares of Alibaba Group rallied sharply higher in anticipation of the signing on January 15th, shooting from $162 to an all-time high above $130. Once the trade deal was inked, it became a sell the news (profit taking) event. Below are the stock chart trade level points on Alibaba.
Alibaba will likely continue to move lower until first support is hit. This technical stock chart trade level target 1 is $210.50. This will likely be hit before the end of January 2020. After a small bounce, expect Alibaba to head to target 2 at $195.00.
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