- BABA has been in consolidation mode in the $160s for more than one week.
- Alibaba stock is trending in an ascending wedge formation.
- In order to blast off to $185, BABA shares must stay above the pivot at $161.88.
Alibaba (BABA), the Chinese e-commerce giant, started the week in consolidation mode and appears likely to end it there. BABA shares opened on Friday a little over 1% down near $163. Its lack of movement as of late makes it a candidate for an upcoming spike in price action.
Alibaba news: BABA earnings scheduled for November 18
Alibaba executives announced on Friday that unaudited results for the quarter ending on September 30 will be released before the market opens on November 18. Wall Street analyst consensus expects $1.95 earnings per share (EPS) on $32.03 billion. In the past three months, there have been three upward revisions and ten downward revisions on the upcoming quarter.
In unrelated news, Bauhinia Culture Holdings is rumoured to be in talks to buy Alibaba's South China Morning Post. The English-language Morning Post is one of the premier newspapers in Hong Kong, and the Chinese state-owned company is said to be interested in adding it to its other media properties.
Barclays on Wednesday added the digital powerhouse to its "overweight" category in a sign of growing Western institutional interest, which waned heavily in the past year after Beijing decided to crackdown on Alibaba and other tech heavyweights.
BABA key statistics
| Market Cap | $454 billion |
| Price/Earnings | 19.6 |
| Price/Sales | 3.78 |
| Price/Book | 2.93 |
| Enterprise Value | $402 billion |
| Gross Margin | 38% |
| Net Margin |
19% |
| 52-week high | $319.32 |
| 52-week low | $138.43 |
| Short Interest | 2.7% |
| Average Wall Street Rating and Price Target | Buy 242.11 |
Alibaba (BABA stock) technical analysis: Beware $161.88
BABA has been consolidating for the six prior sessions between $162.35 and $171.89. This region has acted as a demand zone long enough that it appears to be asserting a further swing lower is not in the cards. The major no-go is the pivot point at $161.88. If BABA price can remain elevated above here, then the stock will continue picking up momentum until it heads higher.
At the moment, it appears that BABA stock is trading within a newly formed ascending wedge formation. The topline only began in early September and the bottom line of the wedge was formed in early October. With the topline more horizontal compared with the bottom line, it would seem that BABA is nearer than most might think to a surge upward. BABA is currently trading directly on the bottom line.
If BABA collects enough spare demand at this level, it could rise to retest the October 20 high of $182.32. Since this sits just under the topline, at $183.77, it would be unsurprising if bulls decided to make a go at the R1 resistance pivot point at $185.33. Making it above here, would allow a much larger surge to test the R2 pivot at $205.77.
If, however, BABA price drops below the pivot point at $166.88, then the thesis is null.
BABA 1-day chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD struggles to hold above 1.0400 as mood sours
EUR/USD stays on the back foot and trades near 1.0400 following the earlier recovery attempt. The holiday mood kicked in, keeping action limited across the FX board, while a cautious risk mood helped the US Dollar hold its ground and forced the pair to stretch lower.
GBP/USD set to swoon on holiday-shortened week
GBP/USD waffled near the 1.2550 level on Monday, kicking off the holiday trading week with a third of a percent decline as market sentiment coils. Market volumes are set to drain out of global exchanges as investors broadly hang up their hats for the Christmas holiday, and global markets will be shuttered on Wednesday.
Gold flat lines above $2,600 ahead of holiday trading week
Gold price trades flat around $2,610 during the early Asian session on Tuesday. Markets face a relatively quiet trading session ahead of the holiday trading week. The US Richmond Fed Manufacturing Index for December is due later on Tuesday.
Ethereum risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.