Alibaba (#ALIBABA) weekly special report based On 1 Lot Calculation:
SPECIAL REPORT: Alibaba
DATE: March 24, 2023
EVENT: Channel price movement
TECHNICAL REVIEW:
- CHANNEL PRICE MOVEMENT: ALIBABA HAS BEEN TRADING IN THE RANGE OF $80 - $120 SINCE DECEMBER 2021. This is the fourth time to test the lower boundary of the channel (SUPPORT= $80). After testing the support of $80, Alibaba would tend to come back up to $120 (RESISTANCE), which is the upper boundary of this channel.
Please note that past performance does not guarantee future results.
- MAIN PARAMETARS:
RESISTANCE: $120
REFERENCE PRICE: $100
SUPPORT: $80 - CHANNEL TRADING MAIN SCENARIOS:
- SENARIO 1: IF CURRENT PRICE TRADES BELOW THE REFERENCE PRICE OF $100 (BETWEEN $80 AND $100), THEN AN UPWARD MOVEMENT MAY BE EXPECTED. TARGET: $120
- SCENARIO 2: IF CURRENT PRICE TRADES ABOVE REFERENCE PRICE OF $100 (BETWEEN $100 AND $120), THEN A DOWNWARD MOVEMENT MAY BE EXPECTED. TARGET: $80
GRAPH: Weekly Chart Alibaba Price (2019- 2023)
Source: Fortrade MetaTrader4 Platform
- CURRENT PRICE: $86
Example of calculation based on weekly trend direction for 1 Lot1
|
Alibaba |
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|
|
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|
Levels |
$120 |
$80 |
|
Profit or loss in $ |
34,000 |
-6,000 |
|
Profit or loss in €2 |
31,542 |
-5,566 |
|
Profit or loss in £2 |
27,776 |
-4,902 |
|
Profit or loss in C$2 |
46,418 |
-8,191 |
1. 1.00 lot is equivalent of 1000 units
2. Calculations for exchange rate used as of 09:36 (GMT) 24/03/2023
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient 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 ManagerClient Manager for more detail