What’s Next For Alibaba After The Stimulus Rally Fizzles? (Technical Analysis)

Summary:

• Alibaba’s stock shows mixed signals with a very bearish near-term outlook, uncertain intermediate and long-term prospects, and modest undervaluation based on fundamentals.
• The daily technical analysis indicates a bearish trend with broken uptrend lines, stalling moving averages, and negative indicators like MACD and RSI.
• Weekly and monthly analyses present a neutral to mixed outlook, with some bullish divergences but overall lack of strong upward momentum.
• Despite weak technicals, Alibaba’s EPS growth and low P/E ratio suggest it is modestly undervalued, justifying a hold rating.

Thesis

It seemed that Alibaba Group Holding Limited (NYSE:BABA) stock finally showed signs of life after the Chinese Central Government released stimulus measures to boost the economy. The stock exploded upward but the rally has since fizzled and has fallen

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