Swing Trade Idea – (BABA) – September 03, 2020
Our bullish trade for Thursday, September 3rd is BABA (Alibaba Holdings Ltd). BABA is part of the Consumer Staples Sector (XLP). XLP has experienced a 5.6% gain in the last month and its 1M and 6M trends turned bullish on July 2nd.
BABA’s 1M trend turned bullish on August 17th and has recently broke above the $272 resistance level indicating further upside potential. With a technical score of 9 (out of 10), BABA is a very strong stock that will likely move higher.
As a stop loss, if BABA were to trade below $281.00 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves above $31.00.
