Technical Analysis – Alibaba stock edges higher, eyeing its 200-SMA
- Stefanos Oikonomidis
The momentum indicators suggest that bullish forces are holding the upper hand. Specifically, the stochastic oscillator has entered the 80-overbought area, while the RSI is hovering beyond its 50-neutral threshold.
Should buying interest intensify, the price may encounter initial resistance at the 200-day SMA currently at 122.00. Conquering the barricade, the bulls might target the 129.00 peak before the spotlight turns to 139.00. Higher, the 158.00 hurdle could prove a tough one for the price to overcome.
On the flipside, if positive momentum fades and the price reverses downwards, the 108.50 region could act as the first line of defence. Sliding beneath that floor, the price could descend towards 102.00 or lower to challenge the 91.80 barrier. A violation of the latter may pave the way for the five-year low of 73.00.Overall, Alibaba’s stock is currently in recovery mode, with the prospect of pushing higher to challenge its long term downtrend. For that scenario to materialize, the price needs to initially jump above its 200-day SMA.
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