The bullish DailyPlay we chose for Tuesday, Aug 27th is Alibaba (BABA). BABA is part of the Consumer Discretionary Sector (XLY). XLY has declined 4.69% higher over the past month and its 1m and 6m trend turned bearish and neutral on Aug 23rd while bouncing higher off its $116 support level.
Alibaba’s 1m and 6m trend turned bearish on Aug 23rd and recently bounced higher off its $160 support level. With a technical score of 8 (out of 10), BABA is a strong stock that will likely continue higher.
As a stop loss, if BABA was to trade below $160 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade.