Alibaba (BABA) Technical Analysis:Retracement Within an Ascending Channel
Alibaba (BABA) has faced strong supply pressure at $149, a key price level that previously acted as support in 2019 and has now flipped into resistance. The inability to reclaim this level has triggered a retracement, with the stock currently trading around $132, showing signs of continued corrective movement.
Despite the short-term weakness, BABA remains within a developing ascending channel, suggesting a potential higher timeframe bullish structure. If the retracement extends, the next significant level to watch is $110, a historical 2016 resistance level that could now act as a demand zone. A strong reaction and rejection from this level would reinforce the validity of the ascending channel and increase the probability of a trend continuation toward previous all-time highs.
Key Levels to Watch:
Resistance: $149 (2019 support turned resistance)
Current Price: $132 (active retracement zone)
Support Levels:
$110 – Historical resistance from 2016, potential demand zone
$100 – Psychological level, further downside risk
Traders should monitor price action around these key levels, as a confirmed breakdown below $110 could invalidate the channel and shift market structure to a more bearish outlook, while a strong bounce could provide a high-probability long setup within the channel’s framework.