Chart of the day

Where do we stand fundamentally?

In mid-November 2024, Alibaba reported adjusted earnings per share of 15.06 yuan, surpassing analyst expectations of 14.82 yuan. However, revenue was 236.5 billion yuan ($32.7 billion), slightly below the anticipated 239.45 billion yuan. The company highlighted robust growth in its cloud division and international retail sales, with AI-related revenue experiencing triple-digit growth. Conversely, sales in China's retail segment remained stagnant.

Following the earnings report, Alibaba's stock experienced volatility, influenced by factors such as economic policies in China and geopolitical concerns. The stock, with a composite rating of 55 and a relative strength rating of 70, reflects mixed market sentiment amid these challenges.

BABA is testing the support of 85.60 which could be a beginning point of a third upside wave of the reversal from a base. A break above 120 is required for an upside reversal and an extension higher. Now only a break below 58.50 would invalidate this extension higher.

The target level in this third wave could be 350-400 if we get a confirmed break above 230 in the medium-term. BABA is well supported at the 70 level and any pullback or consolidation before an extension higher would be supported by it.

_{Try a long trade entry with a stop loss below 80 to target 130 and higher. Trade it with a call option as well like in the example below and become a part of my discord options group.}