Spark Global Limited reports:
Let’s start today with a multi-time frame analysis of Alibaba (BABA.n).
First, in the 1-hour chart, BABA pivots at $201.06. If it can reach this level, then BABA is still very good in the short and medium term. Furthermore, this purple trend line connects the previous bottom, which is also a support level, so we can say that BABA forms an ascending triangle.
If we lose the purple line then BABA could be volatile for a while, but if pivot 201.06 is reached, BABA’s next target is $216.43.
From the daily K-chart, we can see that BABA is in the declining channel, and $216 is the resistance level on its 1-hour chart and the upper track of the channel, so $216 is a double resistance level.
When BABA touches the bottom of the purple line, it forms a hammer-shaped line.
However, this is not necessarily bullish, because there is no bullish structure yet. At the moment we can only see lower highs and lower lows on the daily K-chart. While a pivot break would be a good start, watch BABA’s move.
Reprint indicated source：Spark Global Limited information