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Alibaba (BABA) Pulling Back After the Bullish Breakout

Alibaba has been rallying since making a new low at 57.20.

BABA Daily Chart 11/13

(click to enlarge)

Looking at the daily chart we can make a few observations that suggest the market has turned bullish
1) Price completed a double bottom after a break above 72.00.
2) Price also broke above a falling trendline.
3) This is the strongest bullish push since falling from Alibaba's 120.00 high.

Now, this might have set up a price bottom for the medium-term, which suggests bullish outlook if the momentum sustains. But first, we should consider downside risk back towards the 70.00 area even within this bullish scenario.

Now, if price stays above 70.00, and the daily RSI can hold above 40, we can still consider the bullish momentum live.

The 68.00 area might be the final line of defense for the bullish outlook. There is upside risk back towards the middle of the almost year-long decline up to the 61.8% retracement level, which is the 88.50-96.00 area.

For now, I will stalk the current pullback and see if there is a buying opportunity around 70.00.