Could Alibaba be set to break out?

Get the big picture in one picture, with RRG Research. In this week’s video, Trevor Neil discusses whether the Hang Seng Index can maintain its upward momentum and evaluates the near-term prospects of one of the Hong Kong index’s best-known constituents, Alibaba.

Hang Seng Index: Having risen above a key resistance level at 22,000 this month, the index could move towards the area around 23,000, though resistance intensifies towards the early 2021 highs above 30,000, notes Neil.

Alibaba: The e-commerce company’s Hang Seng-listed shares have rebounded strongly from the 25 October low of HK$60.250, closing at HK$117.500 on 26 January. A break above resistance at HK$120 could send the shares towards the next resistance level at HK$170, according to Neil.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. Nothing in the material included within this publication constitutes a recommendation by CMC Markets or the author that any particular investment, trade, security, transaction or investment strategy is suitable for any specific person. CMC Markets do not endorse or offer opinion on any trading strategies mentioned or used by commentators within this publication. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.