Shares of BABA have once again moved back into the favored zone of the SIA International ADR Report and, in doing so, have pushed to another 52-week high. Reviewing the SIA matrix position chart, we see three pulses up into the favored zone over the past two years. Each time, shares have climbed to new highs: first to $117, then to $141, and now to the current level of $161. Of course, the China trade has often been met with U.S. threats, causing shares of BABA to sell off. However, just as we have seen higher highs, BABA has also established higher lows, noted at $85 and $108.
In the attached weekly candlestick chart, several notable technical signals stand out. The first is the 50/200-week moving average crossover. The downtrend began in early 2022 (see down arrow), but more recently, the averages have crossed back to the upside (see up arrow), representing a significant technical hurdle cleared. Also noteworthy is the recent breakout above the $140 level, which had served as near-term resistance, occurring against the backdrop of a solid support zone highlighted in light green, centered around the $100 level. Finally, the ADX lines have been added to illustrate the growing momentum building in BABA shares, which coincides with increasing volume.
Turning to the point and figure chart with a 2 percent box size, resistance levels are identified at $174.29, with additional resistance higher up at $225.46 and $309.51. On the downside, support is found at the 3-box reversal level of $148.75, the 2021 support at $132.09, and in the light green zone between $114.99 and $117.29. With a SMAX score of 8 out of 10, indicating strong short-term performance across asset classes, BABA continues to demonstrate outperformance against a broad basket of alternative assets.
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.
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