Alibaba $BABA : Pullback confirmation after breaking through 110
Hong Kong tech stocks surged with strong volume in the morning session, with the underlying stock reaching a high of 110.84. It is now pulling back on lower volume on the 1-hour chart, consolidating near the 109.80–110.00 neckline platform.
Key level to watch: neckline support at 109.00:
- As long as the 109.00 platform holds, this is a healthy pullback after the breakout. Consider entering in batches between 109.20 and 109.80 to position for another afternoon push higher;
- Place the stop-loss at 107.80 (a break below this level would signal a false breakout and fading bullish momentum—exit decisively);
- First resistance is at 111.00. If the price breaks through on strong volume, the next target is 113.50.
Chasing the morning rally offers an average risk/reward ratio. Waiting to buy in batches on a pullback below 110 would be a steadier approach.
Will the stock accelerate through the 111 resistance this afternoon, or churn sideways as it shakes out weak holders?
$BABA #TradFi #HongKongStocks
Hong Kong tech stocks surged with strong volume in the morning session, with the underlying stock reaching a high of 110.84. It is now pulling back on lower volume on the 1-hour chart, consolidating near the 109.80–110.00 neckline platform.
Key level to watch: neckline support at 109.00:
- As long as the 109.00 platform holds, this is a healthy pullback after the breakout. Consider entering in batches between 109.20 and 109.80 to position for another afternoon push higher;
- Place the stop-loss at 107.80 (a break below this level would signal a false breakout and fading bullish momentum—exit decisively);
- First resistance is at 111.00. If the price breaks through on strong volume, the next target is 113.50.
Chasing the morning rally offers an average risk/reward ratio. Waiting to buy in batches on a pullback below 110 would be a steadier approach.
Will the stock accelerate through the 111 resistance this afternoon, or churn sideways as it shakes out weak holders?
$BABA #TradFi #HongKongStocks