BABA: Turning from key support level?

BATS:BABA   Alibaba Group Holdings Ltd
111 3 2
- BABA jumping from 'all-time' low levels, after big drop (my previous short idea was right, though the timing was bad)
- The key level provides excellent opportunity for risk management (stop-loss below 82.5, only 5% potential loss).
- Positive divergence in RSI and MACD confirms short term turnaround.
- Break-out from short-term trend might push the stock to around 95 (to the level of previous low and 50D SMA )
How did you establish these levels?
doktor_justice IvanLabrie
The key is the support level defined by the 'all-time' low (it's more of a support zone actually with several minor lows). It provides a good entry point with tight stop. The target comes from the level of the low in Jan 2015 and the SMA close to that. For short term it might be too optimistic as the bottom of the gap can be resistance, but on a 1-3 months timeframe I think it might be reasonable. What do you think?
IvanLabrie PRO doktor_justice
I'd go with either options or an atr based stop in this case, and agree with it possible showing exhaustion in a decline.
What was the IPO price?
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