Alibaba Group (BABA) Share Price Rises Over 30% Since Early September
As shown on the Alibaba Group (BABA) stock chart, the price surpassed $107 on the NYSE on Friday, after trading below $85 at the start of the month.
Bullish sentiment surrounding Chinese stocks is driven by the authorities' plans to stimulate the country's economy:
According to Benzinga, Chinas Central Bank shared plans last week to lower the banks required reserve ratio (RRR);
The Central Bank also outlined further support measures for the struggling real estate market.
It appears that market participants expect these economic stimulus measures to benefit Alibaba Group (BABA).
Technical analysis of the Alibaba Group (BABA) stock chart reveals:
The historical high above $300 was reached in October 2020, after which bears dominated the market. Signs of bullish activity emerged between 2022 and 2024 as the stock fell to $70.
In 2024, the price broke through three descending trendlines (marked in red) drawn through key highs, and the price movements suggest a new upward channel is forming (marked in blue).
The RSI indicator is at a multi-month high, signalling strong overbought conditions, while Fridays candle closed with a long upper wick (a sign of increased bearish activity).
Although the current bullish momentum may still have room to lift Alibaba Group (BABA) shares to the upper boundary of the blue channel, given the information above, there is a significant likelihood of a correction forming in early October.
Read more: https://fxopen.com/blog/en/oa-alibaba-group-baba-share-price-rises-over-30-since-early-september/
Text source: Forex Trading Blog
