Alibaba Group Ltd. (NYSE:BABA) shares were trading lower Friday, down 3.46% at $118.73. Here's a technical analysis.
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Alibaba Daily Chart Analysis
- The stock continues to trade in what traders call a downward trending channel. The stock looks as though it soon could break above the resistance level if buyers can push into the stock.
- The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock’s sentiment has been bearish. Each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) has been climbing higher in recent weeks and now sits at 43. This shows that buyers are once again entering Alibaba stock, but overall there is still a greater number of sellers.
What’s Next For Alibaba?
Alibaba has been pushing lower in this downtrend for the last few weeks. Although the price continues to fall, the RSI is picking back up and is moving higher once again. This is a bullish sign and shows the stock could be ready to turn around soon.
Bulls are looking to see the stock bounce and start to form higher lows breaking above the resistance level. Bears are looking to see the stock continue to fall lower and stay within the trend.
