Alibaba: Trading plan for a breakdown, bottoming at 104.6, then rebounding and retesting
Overnight, the stock plunged rapidly from 112.16, breaking below the 110 level. It hit an extreme low of 104.68, where strong buying support emerged. In the morning session, heavy-volume buying drove a rebound to 109.32, before the price met resistance and pulled back. It is now moving sideways on declining volume in the 107.20–107.50 range. After the Hong Kong market opens this afternoon, watch closely to see how strongly buyers defend the 107 level for a second time.
Key levels:
- Entry: 106.80 - 107.30 (the morning rally’s consolidation point and the intraday neckline; wait for a 15-minute candle to close with a stable lower wick before entering)
- Stop loss: 105.50 (a decisive break below this level would indicate the second bottoming attempt has failed; maximum drawdown capped at around 1.8%)
- Profit targets: First resistance at 109.20 (the morning rebound high; take half off and move the stop to breakeven upon reaching it). If it breaks through, look toward the dense selling-pressure zone at 111.50 - 112.00.
Volatility may increase this afternoon. If testing the waters with an early entry, avoid blindly taking a large position, and cut losses decisively if support breaks.
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English Setup:
Key Levels: Entry 106.80 - 107.30 | Target 109.20 / 111.50
Stop Loss: Invalidation below 105.50
Risk Management: Lock in breakeven at 109.20, tight risk within 2%.
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Bull-or-bear poll: After bottoming at 104.6 and rebounding to retest the 107 level, will Hong Kong stocks start a second rally this afternoon or break down and extend their losses? Join the discussion in the comments!
#TradFi #HongKongStocks
Overnight, the stock plunged rapidly from 112.16, breaking below the 110 level. It hit an extreme low of 104.68, where strong buying support emerged. In the morning session, heavy-volume buying drove a rebound to 109.32, before the price met resistance and pulled back. It is now moving sideways on declining volume in the 107.20–107.50 range. After the Hong Kong market opens this afternoon, watch closely to see how strongly buyers defend the 107 level for a second time.
Key levels:
- Entry: 106.80 - 107.30 (the morning rally’s consolidation point and the intraday neckline; wait for a 15-minute candle to close with a stable lower wick before entering)
- Stop loss: 105.50 (a decisive break below this level would indicate the second bottoming attempt has failed; maximum drawdown capped at around 1.8%)
- Profit targets: First resistance at 109.20 (the morning rebound high; take half off and move the stop to breakeven upon reaching it). If it breaks through, look toward the dense selling-pressure zone at 111.50 - 112.00.
Volatility may increase this afternoon. If testing the waters with an early entry, avoid blindly taking a large position, and cut losses decisively if support breaks.
---
English Setup:
Key Levels: Entry 106.80 - 107.30 | Target 109.20 / 111.50
Stop Loss: Invalidation below 105.50
Risk Management: Lock in breakeven at 109.20, tight risk within 2%.
---
Bull-or-bear poll: After bottoming at 104.6 and rebounding to retest the 107 level, will Hong Kong stocks start a second rally this afternoon or break down and extend their losses? Join the discussion in the comments!
#TradFi #HongKongStocks