Cut Losses In Alibaba
Here’s an update to yesterday’s post on Alibaba (BABA). Momentum has broken its uptrend line so it’s time to close the trade. Remember it’s better to take a small loss on a failed trade than wait and watch it fall apart completely. Another opportunity will come in the future.
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The stock has been initiated to a BUY by 6 out of the 10 brokers since October last year. This might be a stock that doesn't have a lot of momentum currently, but long term I think there's still a lot of belief that it will grow considerably down the road from Deutsche Bank, Stifel and other brokers. If you're feeling a little more patriotic, perhaps Amazon would be a good alternative. earnings due out tomorrow. Wonder if there's any chance of one of these giants eating up its competitor, would be interesting to see.