Alibaba Group (BABA) Stock Reaches Over Two-Month High
As shown on the BABA stock chart, the price today has risen to around $80.80its highest level this summer.
The primary driver of bullish sentiment is the anticipation of a positive earnings report from Alibaba Group Holding Ltd for Q2 2024, set to be released on 15th August.
According to Dow Jones Newswires:
Lazada, a subsidiary of Alibaba Group, has reached a certain level of profitability, which is a promising sign for the tech giant as it seeks to boost international sales amid slowing growth in China.
Alibabas market share has stabilised after a decline in 2021. DBS analysts Sachin Mittal and Andy Yeo note that the Gross Merchandise Value (GMV) of goods sold on Taobao and Tmall has returned to double-digit growth, and Alibabas international e-commerce platforms could become a key driver, with an estimated compound annual growth rate of 23% from FY2024 to FY2027. DBS maintains its buy recommendation for Alibaba shares.
Technical analysis of the Alibaba (BABA) stock chart shows that:
The price is forming an ascending channel (shown in blue) and has already risen to its median line. However, it remains under pressure from a descending trendline that has been in place since 2023.
The chart shows patterns of false breakouts (marked with arrows) of previous local highs. Its possible that a similar pattern (with a return below the psychological level of $80.00) could occur before the report is released.
Be prepared for sharp movements in Alibaba Group (BABA) stock around the time of the reports publication. It could either meet bullish expectations or deliver a bearish surprise.
Read more: https://fxopen.com/blog/en/oa-alibaba-group-baba-stock-reaches-over-two-month-high/
Text source: Forex Trading Blog
