CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% 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.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Alibaba (#ALIBABA)

Special Reports - 24/03/2023

24 March, 2023

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 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 (#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:
  1. 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
  2. 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

Resistance 1

Support 1

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

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