Alibaba (BABA) Share Price Declines from 40-Month High
As shown in the Alibaba (BABA) share chart, the price reached a 40-month high this week, surpassing $145 per share.
Bullish sentiment is being fuelled by news related to AI prospects in China. According to media reports:
Chinas AI spending is increasing through investments from state-owned enterprises, private companies, and local authorities, aiming to keep pace with the US $500 billion Star Gate project.
Alibaba plans to invest $52 billion over three years in artificial intelligence and cloud computing.
Technical Analysis of Alibaba (BABA) Shares
Despite a positive fundamental backdrop, the chart signals potential concerns:
The price is near the upper boundary of the ascending channel, which could act as resistance.
Bulls attempted to break the $145 level (which has acted as resistance since late February) on 17 March but failed, as the price could not hold above this mark.
Using your preferred oscillator, you are likely to observe a bearish divergence between peaks A and B.
This suggests that bullish momentum may be weakening, and investors could consider taking profits after Alibabas exceptionally strong price rallyup approximately 70% since early 2025. If so, a break below the orange trendline could lead to a correction towards the median of the blue channel.
Read more: https://fxopen.com/blog/en/oa-alibaba-baba-share-price-declines-from-40-month-high/
Text source: Forex Trading Blog
