By Nathan Bear, Trade of the Day, 2024-08-09
It's been a wild week.
Yesterday the markets rebounded after a new US labor-market reading helped ease fears about a more pronounced slowdown.
All 3 major groups indexes advanced, and the stock market recorded its biggest single-day gain since 2022.
Still, with the inherent volatility we've seen this week, I've stressed traders should remain selective and only trade the best setups they can find.
Which brings me to today's TGIF watchlist pick – Alibaba (BABA).
Alibaba is a Chinese multinational technology company, specializing in e-commerce, retail, internet and technology. It's one of the world's largest retailers and e-commerce companies. It was also rated as the fifth-largest artificial intelligence company in 2020.
There are several reasons I like BABA's chart right now.
First, it has two A+ squeezes on the daily and 195-minute chart. It's also trading at high volume at 8.7M.
Second, its set to report earnings next Thursday on August 15th and recently announced a dividend which was paid on Friday, July 12th.
Normally I like to have a longer trade window with earnings setups like these, but this chart is a good candidate for a short-term trade with a fast potential gain.
The post Two A+ Squeezes? I'll Consider This Chart… appeared first on Trade of the Day.
