Alibaba Group Holding Ltd Stock Code BABA.NYS
Outlook
Price has been trading within the small cloud area and yesterday, we saw a bullish Engulfing reversal pattern that close above the cloud. This could be a sign that a rally above the cloud could be coming. MACD is bullish and is moving up again after pulling back from its peak. Price is above the Base line and both Conversion and Base lines have a bullish crossover indicating a bullish trend is in progress. If price were to move above the cloud, the next target would be $168. A price move below $149 would negate our bullish view. Risk reward favours a long position with good ratio.
Strategy
$155.80 Trading Buy
$168.50 Price Target
$149.30 Risk Management Stop
2 weeks Trade Duration
Netflix Inc Stock Code NFLX.NAS
Outlook
Price rallied from the low of $231.23 on 26th Dec 2018 to a high of $358.85 on 16th Jan 2019. There was a price pullback after the high. This pullback has stalled at the edge of the cloud which is acting as a support. The pullback has also come close to the Fibonacci 38% of the late Dec to mid Jan rally. MACD is pulling back from its high point but is still bullish. This could hint that the current dip in price is a correction. Price has moved above the cloud and both Conversion and Base lines had shown a bullish crossover. We think the trend is up and this current pullback could be a good opportunity to get into the bullish trend.
Strategy
$316.00 Trading Buy
$377.50 Price Target
$280.50 Risk Management Stop
3 weeks Trade Duration
