BABA - BUY - 20th October 2021




BABA - BUY - 20th October 2021 (Open)


Good afternoon team,

Slightly different trade from our usual setups as we are not using any leverage on this position. We are just buying the stock outright.

We will be looking to post stock trade setups moving forward as part of the Trading Floor service, for the time being, they will be located inside the Trading Floor open trades until the separate page has been built.

 

ALIBABA

The Chinese market has been beaten down considerably over the past couple of months due to the energy crisis, property market issues and regulation change. However, moving into the Christmas season there could be a number of winners. We feel Alibaba is positioned very well to take advantage over the next few months as they specialise in e-commerce, retail and technology – all will be in high demand moving into Christmas. Typically, there is a “Santa Clause” rally over the next couple of months in the stock market, and the recent pullback across equities lines that up nicely.

Weekly Chart

This stock is trading on the US market, so you will need an international broker or investment app to execute the trade. You will also need to wait for the stock to open later this evening.

 

Trade Setup: BUY 10 units – Mid to long term hold

 

We will be calculating P/L in units, for example, if you invest 10 units and the stock goes up 50% that is a 5 unit return on investment.

Trade Setup
BUY - Market Execution

Entry
177

Take Profit
OPEN

Stop Loss
OPEN