Shares in Alibaba Group Holdings Ltd. (NYSE: BABA) rose by 4.54% in the last session, bringing some hope of a potential trend reversal to begin a bullish uptrend. Since August, the price has remained at a lower edge of $80 and an upper edge of $90, pointing to base formation. With recent pressure, prices have gone up 20% from recent swing low and the uptrend is still very much intact. BABA’s price closed the session at $96.35, with a market capitalisation of $249.31B. Analysis demonstrates that stock holders should have a long-term sentiment of anticipation, as this reflects long term potential. BABA has unfortunately been underperforming as per YTD, with total returns of only 4.75%, but could potentially undertake a 10-15% rally if traders manage to break the prevailing $100 resistance.
Technical data shows that the consolidation and recent correction may be over for Alibaba Group. If sustained, a trend reversal to the upside is likely to occur. As mentions above, crossing the $100 price mark will be a huge accomplishment and many are optimistic that this will occur. Watchers can note a few signifiers that trading action has turned bullish: the price is on its way toward the supply zone, there has been recently been a observe a positive crossover on the MACD indicator, the histogram is outwardly on the rise and maintain the sustain above the zero line, and finally, the RSI indicator shows strength at 64, inferring fertile buying atmosphere.
Therefore, it is clear to see that the turnaround for BABA is underway if holding above $80 is sustains; with strong signs of bullishness, the hopes of the long-term investors that the stock has more room for upside progress are strong. The technical analysis suggest that correction on Group investments are officially over, and recovery is around the corner. Though these are views and speculation of the said stock, it is pertinent to reiterate that any financial activity carries the risk of loss.
