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. Weâve 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 10âindicating strong short-term performance across asset classesâBABA demonstrates solid momentum.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
