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Alibaba Stock Keeps Spiraling Down: Could It Bounce?

Benzinga2021-11-19

Alibaba Group Ltd.. (NYSE:BABA) shares were trading lower Thursday after the Chinese e-commerce company reported worse-than-expected quarterly financial results. Alibaba reported quarterly non-GAAP diluted earnings per ADS of $1.74, missing the analyst estimate of $1.93.

Alibaba was down 9.33% at $146.51 midday Thursday. 

Alibaba Daily Chart Analysis

  • The stock fell below what technical traders call a descending triangle pattern and have been falling lower since and creating new areas of resistance.
  • The $220 level was an area where resistance had previously been found and the stock kept pushing lower. Later, the stock went on to create more resistance lines, and the $180 level is also now holding as a resistance area.
  • The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock’s sentiment has been bearish.
  • Each of these moving averages may hold as an area of resistance in the future.
  • The Relative Strength Index (RSI) took a strong dip lower Thursday and now sits at 32. This nears the oversold area where the stock may see many more sellers than buyers.

See Also: Why Alibaba Shares Are Falling Today

What’s Next For Alibaba?

Bullish traders are looking for the stock to find some support and make a bounce. If the stock can bounce, these bulls would then like to see the stock begin to form higher lows and start heading back higher toward the resistance levels.

Bears have been in control of the stock for a while and would like to see the stock continue to fall. Bears are also looking to see the RSI stay low and for the stock to stay below the moving averages for sentiment to stay bearish.

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评论52

  • HMian
    ·2021-11-22
    No for China share for a moment
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    • ShuJie
      Oh
      2021-11-26
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    • ShuJie
      Ya
      2021-11-25
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    • ShuJie
      Ok can
      2021-11-24
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  • Beli
    ·2021-11-21
    Pls bounce back & up! 
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  • tkj
    ·2021-11-21
    🤔what kind of analysis is this? Of course the bears want to see the stock go lower and the bulls want the stock to go higher....my 7 year old nephew also know.....
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  • SamYYL
    ·2021-11-20
    Good and like 
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  • Markie70
    ·2021-11-20
    Good Fundamental company , time to buy .
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  • Rosechin
    ·2021-11-19
    Price is attractive now, time to invest for long term growth profits 
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  • CCCH
    ·2021-11-19
    Price is attractive now
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  • Calvinchin
    ·2021-11-19
    👌🏼 yea 
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  • Dreamchaser9
    ·2021-11-19
    One day will
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    • Calvinchin
      Ok
      2021-11-19
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    • the_mark
      hope it comes soon
      2021-11-19
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  • Lostinroom
    ·2021-11-19
    Need good news to bounce
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  • koolgal
    ·2021-11-19
    Alibaba's fundamentals are still good and still generating profits.  However a slew of bad news on clamp down by the authorities have put a dampener on the share price. For now the shares are volatile but Alibaba is still good for a long term play. Go Baba! 
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    • koolgal
      I agree.
      2021-11-21
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    • Siakhwang
      Yes!
      2021-11-21
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    • koolgal
      I think so but may drop further because of negative sentiment.  Prepare to hold long term.
      2021-11-20
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  • HWChua1961
    ·2021-11-19
    Price has reached attractive entry level for rotational play later
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  • Ahlec
    ·2021-11-19
    快乐的青年去了哪里?
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  • Maxsoh49
    ·2021-11-19
    Hope to see it’s bounce back soon 
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  • JLKang
    ·2021-11-19
    Wait fot higher high 
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  • JiakFree
    ·2021-11-19
    [Miser] 
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  • Jialatsia
    ·2021-11-19
    Meep
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  • ming22
    ·2021-11-19
    Time to dca
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  • MiniInvester
    ·2021-11-19
    No way it can hit back like few years ago. All thanks to one man. 
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