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- 1 BABA stock price faced rejection from $86.00 and reversed down.
- 2 Alibaba stock price struggles to climb above the 50-day EMA.
- 3 Quarterly Earnings of Alibaba Group (NYSE: BABA) are scheduled for November 16, 2023.
BABA stock price faces rejection from the $86.00 and reverses downward. It formed a bearish pattern and prices continued to decline by forming lower low candles.
Alibaba’s stock price is in a correction phase and short-term pullback rallies are getting sold off. It indicates a strong presence of sellers on the higher levels.
BABA stock price tried to climb above the 50-day EMA but was rejected. Moreover, the 50-day and 200-day EMA slopes down denoting the trend is in a downward direction.
Previously, Alibaba’s stock price took support multiple times near $80.00 and bounced back. So, investors and technical analysts expect that a similar kind of pattern may get repeated.
However, until the price sustains above the 50 and 200-day EMA, the reliability of the upmove will remain doubtful.
Alibaba Group Holding scheduled the quarterly earnings for November 16, 2023. Prominent equity analysts predicted an EPS of $2.093 and revenue of $30.738 Billion.
After analyzing the past earnings event we may say that the company might easily beat the estimates. Therefore, stock prices may also react positively and show some surprising upmove.
Will BABA Stock Price Recover After Earnings?
BABA stock price is on a seller’s radar and no reliable signs of upside reversal are visible. The buyers need to break the chain of lower-low swings to regain the confidence of the long-term investors.
On the higher side, $89.00 is acting as an immediate hurdle for the bulls. Until it gets taken out the prices will trade with a bearish basis.
On the lower side, $80.00 is acting as a savior for bulls. If prices slip below $80 then bear will take over the control and drag the prices toward October 2022 lows.
Alibaba Stock Price Near Demand Zone
Alibaba’s stock price seems to be stuck in a wide range of consolidation. The bears are more active so buyers are struggling to defend the lower range support.
However, $80.00 is a strong base and a long-term demand zone. So, it will also not be easy for bears to pull the prices further down.
The MACD curve lost momentum near the zero line and turned sideways. It indicates BABA stock prices lacked direction and may spend a few more weeks in consolidation.
Conclusion
BABA stock price is in the correction phase and sellers are using the pullback as a shorting opportunity. However, the quarterly earnings are scheduled in the coming week. So if the company succeeds in beating the estimates then Alibaba stock prices might show some surprising up move.
Technical levels
- Resistance levels: $88.98 and $96.01
- Support levels: $79.14 and $76.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
