Alibaba Stock: Is BABA Stock returning back to bullish track?

• Alibaba Stock Price (NYSE: BABA) defends $80.00 support. 
• The BABA Stock Price holds the 50 day EMA and attempts to break out of the 200 day EMA.
• Alibaba Group Stock Price has formed a strong base near $80.00. 

Alibaba Stock Price (NYSE: BABA) defended $80.00 and recovered 10.00% approx from the recent swing low. 

BABA Stock witnessed a sudden rise in the buying volume and prices also followed the same direction. It shows that prices might have bottomed out and buyers returning back to track. 

Alibaba Stock Price succeeds to climb above the 50 day EMA showcase the short term trend is reversing up. Well the 200 day EMA is placed slightly higher which might act as a hurdle for the bulls. 

Both the EMAs are sloping sideways, denoting lack of direction and prices might spend some time in consolidation. 

For the past few months, Alibaba Stock Price has been consolidating in the wide range between $80.00 to $100.00. If the prices continue to consolidate for a few more weeks then it might be considered as the base formation. 

Alibaba Stock performed well in the beginning of 2023. Sadly, buyers failed to hold the higher levels and prices began the correction phase. Well the downfall halted near $80.00 and buyers successfully defended the support. 

Alibaba Stock Price closed the previous session at $90.55 with an intraday rise of 8.00%. The market capitalization stands at $234.30 Billion.

Alibaba Stock breakout of $100.00 hurdle?

Alibaba Stock Price tried multiple times to break out of the $90.00 hurdle level but got rejected. It shows that sellers are still active. However, the recent up move looks powerful and prices are likely to hold the gains. 

Till BABA Stock Price is sustaining above the $80.00 level the probability of $100.00 breakout remains high. Well the prices will pick up momentum only above the $105.00. 

On the other hand, if the BABA Stock Price drops below $80.00 then it will trigger the next phase of downfall. The technical analysis suggests, Alibaba Stock Price is near to the strong demand zone and downside risk is limited. 

Will BABA Stock turn bullish on multiple timeframes?

BABA Stock Price formed a bullish engulfing pattern on a weekly time frame. The buyers are trying their best to break out of the $90.00 hurdle. If they succeed then prices will turn bullish on multiple timeframes. 

The MACD is near to the zero line and the curve is reversing upward denotes mild bullishness. If MACD generates a positive crossover will indicate bulls are returning back to track. The RSI at 60 denotes the strength as well as the confidence of bulls.

Conclusion

Alibaba Stock Price (NYSE: BABA) is reversing upward and buyers are trying their best to break out of the $90.00 hurdle. BABA Stock formed a strong base near $80.00 and prices are likely to expand the range upward.

Technical levels

Resistance levels: $100.00 and $105.00

Support levels: $80.00 and $77.00

Disclaimer

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