Alibaba Group Holding Limited, also known as Alibaba Group and as Alibaba.com, is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology.
#BABA in recent weeks lost almost 20% of the shares value, falling from the all time high of $ 317 to almost $ 250 breaking the upward trend in place from March 2020.
We believe the retrace is healthy and gives room for a short term upside. The stock on the 17th November bounced from the $ 250: this area has been for July and August 2020 a very strong area of resistance. We are not surprised that now acted as support level.
From an indicator perspective, the MACD is showing indeed sign of a reversal and RSI moved from almost overbought territory to a more stable 43.
For the near future we expect a run up to $ 286 (level of 50MA) where we expect consolidation before further moves.
Buy price $ 263
First target $ 286
Second target $ 315
Stop loss $ 242
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OTB Global Investments
22 November 2020