Alibaba Group Holding Limited BABA’s strong imbalance mentioned in a previous stock analysis for the stock is playing out nicely as expected. Check the previous Alibaba stock analysis prediction based on supply and demand imbalance to see what happened.
Chinese e-commerce Alibaba may not qualify as an archetypal blue-chip stock, but at half a trillion dollars and growing, it’s earned significant global respect and long-term staying power. Alibaba is one of the largest companies in the world’s hottest major market – even after the 2020’s pandemic – Alibaba arguably enjoys better long-term growth prospects than Amazon.com and yet trades at a much smaller price.
There are new strong weekly imbalances created on Alibaba stock as the price is breaking all-time highs over and over. The stock is very bullish, but there has been no pullback to the last Alibaba stock imbalances.
There was a very strong weekly demand imbalance of around $253. There is a clear bullish bias on this stock but by the time price pulls back to these imbalances, they might have been invalidated. A top-down stock analysis is needed to make the right trading decision.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy Alibaba BABA CFD (contracts for difference) if you are in a country where it’s allowed.
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