Alibaba Group is by far the biggest retailer in China, boasting a huge base of buyers. Sales and margins are strong and off the charts, yet the company has had some issues and controversies, and those have shown up in the stock chart. First and foremost, they are dealing with the economic slowdown in China. No company seems to be immune, and they have taken the brunt of the selling action. When the biggest names lose their support and growth starts to decline, so too does the stock price.
Alibaba Outlook
Later in September, Alibaba may be facing another negative event: a 1.6 billion share lockup release, the equivalent of nearly $100 billion. This will allow shareholders to finally sell shares, and while some say they are long term holders, don’t believe it. The chart is looking horrible, and the low that it hit last week will be tested again sooner rather than later. Relative strength is awful as well, and volume has swelled on the down days. The recent rejection of the channel says this stock has more downside to come.
Alibaba Chart Analysis
Take a deeper dive into the chart action (NYSE: BABA) and learn how to read the technicals and my analysis as I mark up our chart of the week.
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About Alibaba
Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the Peoples Republic of China and internationally. It operates Taobao Marketplace, an online shopping destination; Tmall, a third-party platform for brands and retailers; Juhuasuan, a group buying marketplace; Alibaba.com, an online wholesale marketplace; Alitrip, an online travel booking platform; 1688.com, an online wholesale marketplace; and AliExpress, a consumer marketplace.
