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  1. Home
  2. / Investing
  3. / Global Equity

Alibaba Is Likely to Trade in a Base Pattern

Let's see what the charts look like.
By BRUCE KAMICH
Sep 07, 2023 | 12:40 PM EDT
Stocks quotes in this article: BABA

Alibaba Group Holding Ltd ( BABA) gets plenty of attention as perhaps the world's largest e-commerce site. There remain tensions between the U.S. and China as well as co-founder Jack Ma's status with the leadership of Beijing. Let's review the charts and indicators for any fresh clues.
 
In this daily bar chart of BABA, below, I can see that prices have been trading above and below the 50-day and 200-day moving average lines for several months. Currently BABA is trading below these two popular averages. Trading volume has declined since late March suggesting a decline in investor interest.
 
The On-Balance-Volume (OBV) line has struggled to advance since January. The Moving Average Convergence Divergence (MACD) oscillator is right on the zero line and could easily move below for an outright sell signal. 
 
 
In this weekly Japanese candlestick chart of BABA, below, I see a less than robust picture. Prices have been moving sideways since early 2022. BABA has crossed above and below the 40-week moving average line. The weekly trading volume has not increased and that is disappointing.
 
The weekly OBV line is in a long-term neutral trend. The MACD oscillator is hugging the zero line. 
 
 
In this daily Point and Figure chart of BABA, below, I can see a downside price target in the $74 area. 
 
 
In this weekly Point and Figure chart of BABA, below, I see a price target in the $71 area. 
 
Bottom line strategy: I have no special knowledge of how things will evolve with China and their wavering economy, but the charts of BABA are just neutral at best. 
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TAGS: Investing | Markets | Stocks | Technical Analysis | E-Commerce | China | Global Equity

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