Investing.com investing.com 29 Dec, 2020 16:45 am

Chart Of The Day: Don't Be Fooled By Alibaba Dip-Buying, More Pain Still Ahead

Chart Of The Day: Don't Be Fooled By Alibaba Dip-Buying, More Pain Still Ahead
Stocks Analysis by Investing.com (Pinchas Cohen/Investing.com) covering: Alibaba Group Holdings Ltd ADR, Alibaba Group Holding Ltd. Read Investing.com (Pinchas Cohen/Investing.com)'s latest article on Investing.com

This sudden shift in Alibaba's (NYSE: BABA ) fortunes comes just two months after the stock hit a new high of $319 in late October following its record-breaking $100 billion in sales during Singles Day which began on Oct.28 high of $319.Because shares in Hong Kong have plummeted over 15% in just two sessions, bargain hunters have been hovering.Bargain hunters consider it a buying dip, and are lured in, which sets up the short squeeze.

While the weaker pattern provides a more confident sell call, waiting for its completion—with a downside breakout of the neckline—already ate away some of its profits.Note, the 200 DMA met up precisely with the point of the neckline’s downside breakout.

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