Long-term Trading Forecast on Alibaba Group

PUBLISHED: 24 Sep 2014 @ 03:23 | Comments (0) | More info about Azeez Mustapha

Here is a long-term forecast on Alibaba Group Holding stock (NYSE:BABA). This is a new market – one of the newest on earth and the media is full of the hype. It is better to speculate on this market with the aim of making long-term gain that is bigger than loss, while also considering potential pullbacks along the way. It is important that you make enough profits to cover the costs of trading; otherwise you would be fighting a losing battle.

In the chart, the market made a futile attempt to rally, but got pushed down a bit. Since then, the market has been in a kind of consolidation, bringing no big loss to the bull or the bear. The conspirator who dug the pit only dug a shallow one. The victim who fell into the pit has not broken any limbs. We should be thankful for small mercies. The price is still within the 2 Trendlines, but a break to the upside is more likely when the market begins to trend.

A break to the downside could be temporary, thus turning out to be a false breakout. The RSI period 14 is below the level 40, showing that the market is currently consolidating to the downside. In the long-term, bearish attempts my make the price go towards the demand zones at 85.00 and 80.00. Meanwhile, bullish effort my drive the price upwards, enabling it to reach the supply zones at 98.00 and 100.00 within the next several months.

This forecast is ended by the quote below:

“When it comes to money and investing, we’re not always as rational as we think we are – which is why there’s a whole field of study that explains our sometimes-strange behavior.” – Cathy Pareto

Learn from the Generals of the Markets: Market Generals

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.