Alibaba Shows Oversold Condition
Alibaba is the most prominent of the major Chinese technology stocks that have soared in 2020. It fell sharply after authorities suspended the initial public offering of its Ant finance arm on November 3.
That decline has landed BABA deep in oversold territory, according to stochastics. This is the most oversold since June 2019 when Beijing and Washington were clashing over tariffs and trade.
BABA has also returned to levels from July and August. The current price area around $260 is near the top of a bullish triangle that the shares escaped in late August (and retested on September 25).
Other Chinese tech stocks have kept climbing lately – even as the Nasdaq struggles. At this point there’s a lot of bad news priced into BABA, even though Singles Day set new records. Traders may want to watch for the e-commerce giant to stabilize and start thinking about some kind of bounce.
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That decline has landed BABA deep in oversold territory, according to stochastics. This is the most oversold since June 2019 when Beijing and Washington were clashing over tariffs and trade.
BABA has also returned to levels from July and August. The current price area around $260 is near the top of a bullish triangle that the shares escaped in late August (and retested on September 25).
Other Chinese tech stocks have kept climbing lately – even as the Nasdaq struggles. At this point there’s a lot of bad news priced into BABA, even though Singles Day set new records. Traders may want to watch for the e-commerce giant to stabilize and start thinking about some kind of bounce.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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