We’ve been tracking Alibaba (BABA) since its IPO. Our momentum indicators have refused to issue a buy signal for the stock until now. The bearish trend of 7 day momentum has finally been broken to the upside after a positive divergence. This indicates that the buyers are starting to overwhelm the sellers. The long signal will be in place until the newly established uptrend line is broken to the downside. At that point it would be prudent to at least take profits if you don’t close the trade outright. You can keep track of Twitter momentum with the interactive chart of BABA here.
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