Alibaba Stock Technical Levels To Watch

Alibaba Group Holding Ltd. BABA shares were trending on Stocktwits Monday, and the stock is trading down in the session. 

Alibaba Technical Levels To Watch: The short-term, 5-minute chart above shows that the stock is trading in a channel.

The top of the channel is near the $242 level and the bottom is near $226. These areas have previously been unable to break.

The stock Monday morning trades below the VWAP (pink) and the 200 Moving Average (Blue). These areas may also hold as short term resistance until the price is able to break above.

If the price breaks above these levels, they may then hold as short-term support.

Related Link: Jack Ma's Ant Pledges To Go Carbon Neutral By 2030

Alibaba Daily Chart Analysis: The daily chart above shows the stock has been in an overall downtrend for the last three months. This can be shown by connecting the highs of the chart and observing that the slope of the line is negative. The chart is also showing a potential bounce area near the $225 area.

Another potential area of resistance on the daily chart is at the 200-day moving average; this area floats around depending on previous prices. The average is at $260 Monday, but will change as time goes on. A break may cause the average to turn into support.

Bullish technical traders would like to see the stock have a “double bottom” pattern and rise back up to resistance. A break of the downward line that is connected by previous highs may cause the stock to start trending upwards.

To a technical bearish trader, this is a “descending triangle pattern,” where the stock downtrends to a support level and price consolidation until it is squeezed at the support level and falls through, typically with a strong move after the support is broken.

Alibaba is trading with a market cap of $651 billion on Monday. 

BABA Price Action: Alibaba shares were down 3.61% at $27.38 at last check Monday. 

Benzinga's "Get Technical" is all about engagement. Ask for the stock analysis that you want to see! Learn about indicators such as MACD, Fibonacci retracement, RSI and moving averages. Watch today's show in the video below: