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aibaba stocks

Alibaba (BABA) price soared to fresh all-time highs of $268 per share on July 09, following a break of the upper regression. The stock has been on an upward trend since the $120-$58 pullback that was recorded between Nov ’14 and Feb ’16 formed a long-term channel.

The multi-year channel breakout triggered a correction down to $240, registering a false break, initially. Pulling back within the regression channel hints at additional losses. This is also supported by the 2-day RSI (14) indicator as it has formed a bearish divergence against the price.

Trading near the upper regression after finding a base at the support low, the stock could turn negative again. The next medium-term base lays at the previous high of $230. This is in confluence with the 38.2% Fibonacci retracement of the $170-$268 leg, which makes firm support.

In addition, the said Fibonacci level might interact with the lower regression of the short-term ascending channel. This started forming after the $230-$...

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