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Technical Analyst Weighs In On Alibaba

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Technical analyst Rod David weighed in on Alibaba Group Holding Ltd (NYSE: BABA) regarding the company's stock movement.

David told Benzinga, "The decline from November's peak has extended into January. It is a classic downtrend, defined as a series of alternating lower lows and lower highs. Earnings are not being greeted from a position of strength."

He went on to say that January's price action has formed an "inverted Head and Shoulders," which usually reduces the trend. However, this move would be temporary as public attention may turn to the recent news that the Chinese government is interfering with Alibaba's business operations.

In the short-term, David suggests that Alibaba may test $92.50. "Still holding 92.50 through the first hour would likely react up to 97 or 100 before the downtrend resumes."

Alibaba closed Wednesday at $98.45. It traded recently at $92.93 in the premarket, down more than 5 percent.

Latest Ratings for BABA

DateFirmActionFromTo
Apr 2019BarclaysMaintainsOverweightOverweight
Mar 2019BairdMaintainsOutperformOutperform
Dec 2018MizuhoAssumesBuy

View More Analyst Ratings for BABA
View the Latest Analyst Ratings

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