Key takeout
Alibaba Group (BABA) US list stocks surged to three-year highs on Thursday after the Chinese technology and e-commerce giant reported quarterly results beyond Wall Street’s expectations.
The company added that its artificial intelligence-driven strategy has re-stimulated the growth of its core business, achieving triple-digit growth for the sixth consecutive quarter of AI-related product revenue.
Alibaba’s shares have skyrocketed 60% since the end of the year since the end of Thursday, boosted by reports that the company will partner with Apple (AAPL) to provide AI capabilities to its iPhone in China. Sentiment about stocks has also recently received a lift after co-founder Jack MA attended a meeting with Chinese leader Xi Jinping earlier this week.
Stocks rose 8% on Thursday to close to $136, closing at its highest level since November 2021.
Below we take a closer look at Alibaba’s weekly charts to identify key post-revenue price levels that are worth paying attention to.
Accelerate your purchasing momentum
Since receiving a retracement to the top trend line of broad symmetric triangles, Alibaba stock has been significantly higher, with prices exceeding the closely monitored 200th period moving average (MA).
Importantly, the rally occurs with above average trading volumes, signaling convictions from large market participants, such as institutional investors and hedge funds.
The relative strength index (RSI) checks bullish price momentum with reads above the 70 threshold, but the indicator also flashes overstock conditions, increasing the chances of short-term profit acquisition .
Identify key support and resistance levels on Alibaba charts that investors may be looking at.
Important level of support to monitor
The first wave of profits could take advantage of the $103 level. The stock may find support in this area near MA for the 200 period, which is in close agreement with the April and July 2023 peaks.
Beneath this location, stocks can revisit the $78 level. This area, currently located near the top trend lines of symmetrical triangles, could provide support near a similar price range on the chart, dating back to March 2022.
Important resistance levels to monitor
If the stock continues to track the top, investors should first monitor how the price responds to the $178 level. The stock could face resistance in the region near the September and October 2021 countertrend peaks formed during the long-term downtrend between 2021 and 2022.
Finally, buying above this level could drive the rally to around $231. Investors link a series of comparable trading levels with prominent swing highs in January 2020 with a set of trendlines on the charts between 12 months between June 2020 and June 2021. You can try to close the profits of this region near the area.
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As of the date this article was written, the author does not own the above securities.
