However, stocks don't usually climb in a straight line, and many of these names are showing signs of exhaustion after a significant rally.
This time, I'm introducing a new indicator for my trade setup: the MACD (Moving Average Convergence Divergence).
In the case of BABA, the blue line (the MACD line) is crossing below the yellow line (the signal line).
The trade To capitalize on a pullback in BABA, I'm using a trade structure called a "bear put spread."
For example, if BABA is trading at $102, I would buy a $103 put (higher strike) and sell a $101 put (lower strike) to complete the trade setup.
Persons:
I'm, it's, BABA, Nishant Pant
Organizations:
PDD Holdings, Baidu, Futu Holdings, CNBC, NBC UNIVERSAL
Locations:
BABA