BABA: Two Strategic Entries for Falling Wedge at Support

Dec 19, 2025

BABA: Two Strategic Entries for Falling Wedge at Support

We are seeing a textbook bullish setup on the BABA 4-hour chart. A Falling Wedge pattern converging right on top of a major historical Support Zone.

This structure offers us two distinct tactical approaches:

1. The Anticipation Entry (Buying Support) Enter near the "Great Support zone" before the wedge actually breaks out.

Maximizes potential return (around 20%) by catching the exact bottom of the structure. The SL can be as tight as 4 to 6% thanks to the support.

BUT, Requires anticipating the reversal before confirmation and this reduces the susccess rate.


2. The Breakout Entry (Waiting for Confirmation) Wait for price to decisively break above the wedge's upper trendline.

Higher probability as momentum is confirmed, the subsequent move is often more aggressive and fast.

BUT, Lower total potential return (around 12%) as you miss the initial bounce from support.


The beauty of this setup is that both options allow for very tight Stop Losses placed just below the critical support zone, offering excellent risk/reward ratios regardless of your chosen entry style.


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Jan 5

Trade active

After the opportunity to buy in the support, we've now seen the break. Everything unfolding as expected right now.

Feb 13

Trade closed: target reached

The price reached the $180 target.