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Berger: Alibaba "scares the pants off" the bears
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Alibaba, the Chinese e-commerce retailer, reported a 45% increase in revenue on May 7th. With more than USD 2.8 billion in revenue the bulls returned to the stock, according to Serge Berger, better known as The Steady Trader. After reporting earnings the stock gapped higher above the key resistance level of USD 86, which Serge says “scared the pants off” the bears. Alibaba had lost 33% of its value since its peak in November and was trading below the USD 80 support level ahead of its most recent earnings. Additional concerns surrounding China’s slowing growth and the sale of counterfeit goods had pressured the stock.
Serge however believes that the stock “looks sound” from a long-term technical perspective. He is looking to buy shares of Alibaba around USD 89 with a price target of USD 93. A stop can be placed at USD 86.
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