Alibaba (crone) – Get the report the stock has evolved hard lately. The shares of the e-commerce giant have increased by almost 1% in months, but this comes after a painful end compared to the previous week.
In a week of short-term holiday trading, Alibaba did not deliver gifts to its investors. Instead, it distributed coal, down 13 percent on Friday and 15 percent a week.
On Friday’s low, shares fell nearly 18 percent as investors sold their fists.
At lows of nearly $ 211, Alibaba’s stock fell nearly 34 percent from its Oct. 27 high. What happened in less than two months?
First, the IPO Ant was released just days before its public debut. Given that Alibaba holds a third of the stock in the company, this was a negative catalyst, and the charts clearly look the same.
Although the IPO Ant was delayed due to regulatory issues, new regulatory concerns targeting Alibaba have been the latest catalyst for the sale.
As we approach 2021, this seems more like a buying opportunity than a selling opportunity. Management must agree, as the company is now increasing the size of its share repurchase plan.
Alibaba Stock Trading
Monthly chart of Alibaba stock.
Graphically, courtesy of TrendSpider.com
Thanks to the negative catalysts above, analyze how Alibaba’s stock has performed in the last two months. After getting up for seven consecutive months, the bulls took a painful punch.
However, not all hope is lost.
First, the stock is supporting the 21-month moving average. He also finds assistance at the 2018 high of $ 211.70. Shares fell close to this mark on Friday, dropping to $ 211.23.
While the 2018 high seems somewhat irrelevant, look at how notable this area was in late 2019 and the first half of 2020. This area was a problem, highlighted by all the wicks above this brand, but no solid closes above $ 211.70.
This continued for six months – until this summer.
A drop of about 30% from the highs for a high-quality growth company seems like a safe place to dip your toes in the water. Conservative traders can measure their risk against the current low and look for a return.
At a daily close below $ 211, it could put the measured monthly volume of the weighted average price close to $ 197. It could also move the 200-week moving average, currently close to $ 187 (not shown in the chart above).
These would be areas of interest at a disadvantage.
In addition, you are looking for a return to the 50-week moving average of almost $ 240, followed by the current 10-month moving average of almost $ 246. Near the latter, the 200-day moving average also comes into play.
Although it may take some time for a lasting recovery to take place, this seems like a reasonable decrease to buy for patient bulls.