Alibaba Group Holding Limited (BABA) is a Chinese multinational technology company specializing in e-commerce, offering consumer-to-consumer, business-to-consumer, and business-to-business sales through various marketplaces. In addition to e-commerce, Alibaba provides services in digital media, logistics, and cloud computing, maintaining a diverse portfolio across multiple sectors globally. Shares of BABA have regained attention as the Chinese market benefits from significant fund flows back into this asset class. Notably, Alibaba has returned to the favored green zone of the SIA International ADR Index Report, currently ranked #26. Performance-wise, shares are up 31.77% over the past month and 41.49% year-to-date. Analyzing the candlestick chart set to a weekly reading, we observe a breakdown below the 50-week moving average in early 2021, leading to a decline to just over $60. Since 2022, shares have been locked in a trading range between $60 and $120. A full breakout is still in the making, and the latest rally seems promising; however, a close above $118 would confirm this new breakout.
Turning to the point and figure chart with a 2% box size, resistance levels are identified at $119.64 and $134.73, with support at $98.14 and $85.44. Weāve highlighted three previous levels where shares moved into the favored zone of the SIA International ADR Report but subsequently failed at resistance and declined. This scenario is similar, yet it occurs against a backdrop of Chinese equities benefiting from global fund flows. Investors are advised to monitor any breakout past resistance for confirmation that Alibaba is entering a new bull phase. With a SMAX score of 10 out of 10āindicating strong short-term performance across asset classesāBABA demonstrates solid momentum.
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