Alibaba (BABA) stock just cannot catch a break this year as yet more misery is heaped on shareholders. Earnings this week were poor with a miss on top and bottom lines and now more Chinese regulatory scrutiny is hitting sentiment as Bloomberg reports that China has asked Didi Group (DIDI) about a potential delisting from the New York Stock Exchange. China is growing increasingly concerned over the amount of data its huge tech companies have access to and how this is stored. BABA earnings were out on November 18. Earnings per share (EPS) missed estimates coming in at $1.74 versus $1.93. Revenue also missed forecasts coming in at $31.15 billion versus the $32.05 billion estimate. Alibaba (BABA) also revised its revenue guidance downward to forecast 20% revenue growth when analysts had been looking for a number nearer to 30%. BABA had in an earlier earnings report indicated growth near 30% for the year in revenue terms so this was a further blow to investors sentiment.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Now news hits of DIDI reportedly being asked to consider delisting in New York according to Bloomberg. While not a direct link to BABA stock it nonetheless highlights growing investor concerns over Chinese tech companies and will add to negative sentiment. Alibaba (BABA) stock is already trading over 3% lower in Friday's premarket.

Alibaba shares are hovering above the equator line of our intraday bearish channel with technicals like relative strength index , MACD and Stochastic are trading in the oversold conditions on the daily time frame. A bullish recovery can push the pair higher towards $190 and $192. 

From the weekly, longer-term view we can see strong support just under $130 at $129.77. These are the lows from November and December 2018. Breaking that will lead the next target to likely be $100.

Alibaba Targets 130$ as Key Support

Nov 28 2021

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