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- 1 Alibaba stock price down by about 30% from the recent peak at $121.
- 2 BABA stock price slipped below 50 and 200 day EMA showcase downtrend.
- 3 Alibaba Group (NYSE: BABA) stock reacted negatively despite beating the Q4 analyst estimates.
Alibaba Stock (BABA) price is down by 30% from the recent peak of $121 and formed a bearish pattern. BABA stock has slipped below the 50 day and 200 day EMA and displayed a death crossover, which showcases downtrend on the positional basis. However, the fall halted at $80.00 and gave a minor bounce from the lower levels.
Alibaba stock price closed the previous session at $86.90 with an intraday rise 0.44% and market cap stood at $230.07 billion. At the beginning of January, BABA stock price broke out of the $100.00 level with a higher volume and prices began to rise upward by forming higher highs.
BABA stock price has also managed to climb above the 50 and 200 day EMA which further supported the bulls and prices rallied 20% in one month. The rally halted at $121.00 and witnessed minor profit booking from the higher levels.
Will Alibaba Stock Price See Rebound?
Alibaba stock consolidated for a few days in the narrow range between $100.00 to $110.00 but the company’s quarterly results negatively impacted the price. The Alibaba Group released the quarterly earnings on 23rd February 2023, and succeeded to meet the EPS, as well as revenue estimates.
Despite that, Alibaba stock price fell about 5% on a single day and dropped below the lower range. Prices continued to decline by forming lower lows and lost all its previous gains.
Recently, BABA stock price found support at $80.00 and tried to make a short term bounce but prices seemed to lack momentum. Technical analysis suggests that Alibaba stock price is in the bears grip and the possibility of a sharp rebound is low. However, if the global market sentiment improves, then we might see some positive recovery which might push the price to the $100.00 mark.
Will BABA Stock Price Gain Momentum?
BABA stock price will gain its momentum back when it succeeds to sustain above $100. Till then, it is expected to consolidate in the narrow range between $80.00 to $100.00. However, if the price drops below $80.00, the bears can try to drag the price further down towards the yearly lows.
Technical indicators like MACD had generated positive crossover indicating bullishness to continue for some more time. The Relative Strength Index (RSI) at 44 sloping north denotes price might enter into the neutral territory.
Conclusion
Alibaba stock price fell 30% from the recent peak and slipped below the 50 and 200 day EMA showcase downtrend. Technical analysis suggests that the BABA stock price is in the bear’s grip and the probability of a sharp rebound remains low. But if global market sentiment improves, then we may see a relief rally from the lower levels.
Technical levels
Resistance levels : $100.00 and $121.00
Support levels : $80.00 and $60.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
