After hitting a double top
pattern, BABA is heading back down to its support line. Watch it at the 252-253 range, at which point it should bounce. Both the RSI
and trend lines
indicate that the stock could and probably will fall further. For investors wondering when the best time to cash in on profits, I would set a stop loss at the 250-251 range. I would recommend taking an entry position/adding more if the rsi
bounces off the bottom trend line
, above 253. Interestingly enough BABA’s chart and RSI
shows an upward channel.