CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Alibaba

Market Opportunities - 13/10/2020

13 October, 2020

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

Alibaba uptrend opportunity based On 1.00 Lot Calculation:

  • Alibaba is a pandemic winner. The stock price is up 46% in about six months. The company is often compared to Amazon because of its focus on e-commerce and cloud business.
  • China significantly recovered from the health crisis downturn, while the core Chinese retail market sees steady growth. The health crisis in China is firmly under control and at record levels.
  • The company’s consistently growing free cash flow provides a tremendous support for the stock price. The quarterly results are expected by the end of October/early November.

Alibaba, October 13, 2020
Current Price: 306

Alibaba

Weekly

Trend direction

UP

Resistance 3

332

Resistance 2

329

Resistance 1

326

Support 1

286

Support 2

283

Support 3

280

Example of calculation based on weekly trend direction for 1.00 Lot*

Alibaba

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

26,000

23,000

20,000

-20,000

-23,000

-26,000

Profit or loss in €**

22,054

19,510

16,965

-16,965

-19,510

-22,054

Profit or loss in £**

19,913

17,615

15,317

-15,317

-17,615

-19,913

Profit or loss in C$**

34,060

30,130

26,200

-26,200

-30,130

-34,060

* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 10:20 (GMT+1) 13/10/2020
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Senior Account Manager for more details

Share It With Your Network
ALIBABA Ltd Chart
Update Time: -
Highest
Lowest
1M 5M H D W
Prices are loading..
Ready for trading?Start Now