We last reviewed Alibaba Group Holding Ltd. (BABA) on May 5 writing that, "Continue to keep protective stops on a close below $190. $233 and then $277 are the upside price targets." It turns out that May 5 was the end of the decline and now prices have rallied to make a new high for the recent move up and besting the April high.
Let's check out the latest charts of this Trifecta Stocks holding.
In the daily bar chart of BABA, below, we can see the recent price strength, including an upside price gap Monday. Prices are above the rising 50-day moving average line and the rising 200-day moving average line.
The trading volume looks like it has increased in April and May, which helps to support the bullish case. The daily On-Balance-Volume (OBV) line has been firm and is close to making a new high for the move up.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has turned higher for a new outright buy signal.