How To Trade Alibaba (BABA), Apple (AAPL), EBay (EBAY) Stocks?

Alibaba (NYSE:BABA)

Alibaba Technical Chart

It has all come full circle for Alibaba (NYSE:BABA) as the stock has sunk back to its early IPO levels. This isn't all bad though as the highs the BABA stock experienced were news driven and not technical achievements. Selling has been relentless but there may be a light at the end of the tunnel. Nothing has changed in the fundamentals besides the lawsuit filed recently. The company is still making prudent moves as evidenced by this weekend’s releases. Technically the bright spot is the free fall stopped right at support. This shows reluctance by holders to let the stock go any cheaper. RSI is indicating that the Alibaba stock is oversold to extreme levels. If support holds true, a move back to $90 can be expected and an attempt to fill the gap created by the sell off. Resistance is strong at $95. The back fill would capitulate at just above that level so an attempt can be expected to happen soon. (See: Alibaba technical charts)


Apple Technical Chart

This is a chart for the ages. The timing of the Apple's recent Q1 earnings couldn't have been better for Apple (NASDAQ:AAPL) as the news took the stock higher off a well-defined double bottom. You could make a case for the pattern being a triple bottom but the initial arm lacks definition. Regardless, the stepdown effects shown by the pattern prior to the formation of the W shows weak hands made a critical mistake. Amazingly, the Apple stock is neutral and neither oversold nor undersold. Momentum indicators are rapid but still have room before their peak level. The chart tells you everything you need to know. Barring any traumatic market effects, the Apple stock will continue to make new highs. At some point it will need to consolidate, but it’s not there yet. (See: Apple technical charts)


Ebay Technical Chart
Technically eBay (NASDAQ:EBAY) is completing a double bottom. But this isn’t a true picture of its current state. It needs to reach $57 and move through that to complete the formation at which time the next headwinds appear at $59.70. There is a crossover forming in the momentum indicators which is positive but the strength of the eBay stock is still fragile. RSI started a pointed move upwards and an overbought situation could develop quickly. Brave players will see $55.32 as an entry point but technically the stock is a hold until it takes out $57.40 convincingly. The technical danger appears as it approaches that level which if eBay stock flutters could start a bearish triple top. If that happens support remains at $52.94. (See: Ebay technical charts)

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