Alibaba Group Holding Ltd (BABA)

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Chart evaluation on BABA made today (Saturday 5/4)

BABA made a new 6-month intraweek and weekly closing high and closed on the high of the week, suggesting further upside above last week’s high at 81.42 will be seen this week. The stock generated a failure signal against the bears, having closed above the previous weekly close support at 79.62, meaning that the breakdown that occurred in November has now been negated. More importantly, the downtrend that started in October 2020 (from a high of 304.69) and that ended in October 2022, now shows 2 successful retests of it and that suggests that a short-term uptrend could begin shortly. To do that, the bulls need to generate a weekly close above 85.31. If that occurs and is confirmed, a rally up to the $95-$98 level would likely be seen over the following 2-4 months. This breakout is not likely to occur this week or the next but could occur before the end of the month. As a matter of information, the stock could get up to the $113 level over the next 6 months and if that level is broken on a monthly closing basis, A longer term uptrend will begin and have as an objective, a rally back up to the $200 level (which could be seen over the next couple of years). As for as this week, the bulls must now stay above (on a daily and weekly closing basis) the $80 demilitarized zone (79.70-80.30). The 200-day MA is currently at 80.00 and there is short-term pivotal daily close support at 79.84 and pivotal at 78.23. If a weekly close now occurs below 77.51, all of this accomplishment by the bulls will be erased.