Alibaba – SW (Code: 9988.HK) Trading Strategy
Published On: 5 December 2022, 10:50 AM | Huang Zixing, DealerTaking a look at the daily chart of Alibaba – SW (Code: 9988.HK), price has been rejecting the HKD 80.85 resistance level (yellow line). However, it recently broke past this resistance level. We now see that the upward green line seems to be a resistance level forming and the initial horizontal yellow line appears to have become a support level.
Thus we can try following trades:
- Long strategy: If price breaks below the yellow support level and recovers back above it, we can buy just above HKD 81 and we can expect price to extend to the resistance of the upward green trend line shown in the chart at HKD 92.
- Short strategy: If price breaks below the yellow support level and continue to fall, we can short sell at HKD 80 and buy back when the price touches the middle band of the Bollinger Bands (HKD 75).
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