Alibaba (BABA) has been a total dog so far this year. Shares were trading well into the fourth quarter of 2020 but then a string of issues pummeled the stock.
Regulators disrupted Ant's initial public offering, then dug deeper on Alibaba and dialed up the heat.
Investors don’t like regulatory issues as it is but particularly when we’re dealing with Chinese regulators.
However, in April, Alibaba paid a smaller-than-expected but still record fine, hoping to puts its regulatory issues behind it. Still, the stock hasn’t responded the way bulls were hoping.
All of this comes as the S&P 500 and Nasdaq continue to grind out new all-time highs.
It also comes as FAANG stocks continue to trade incredibly well. Alphabet (GOOGL) - Get Report is the top performer with a near-40% gain in the first half of the year, while Netflix (NFLX) - Get Report is the worst, with a 2.3% drop.
Alibaba has a similar first-half performance, down 2.6%. However, it’s doing far worse from the highs, down more than 30%.
Call me a hopeless optimist, but I feel that Alibaba can have a solid second-half performance.
Shares continue to hold the $210 to $212 area and have recently cleared downtrend resistance . That said, there’s plenty of overhead hurdles.
A push over $235 - thus putting it over all of the moving average hurdles mentioned above - could open up a run to $250, then $263. Above $275 and $300 is in play.
Keep the risk in mind but this could be a solid second-half rebound play.
Regulators disrupted Ant's initial public offering, then dug deeper on Alibaba and dialed up the heat.
Investors don’t like regulatory issues as it is but particularly when we’re dealing with Chinese regulators.
However, in April, Alibaba paid a smaller-than-expected but still record fine, hoping to puts its regulatory issues behind it. Still, the stock hasn’t responded the way bulls were hoping.
All of this comes as the S&P 500 and Nasdaq continue to grind out new all-time highs.
It also comes as FAANG stocks continue to trade incredibly well. Alphabet (GOOGL) - Get Report is the top performer with a near-40% gain in the first half of the year, while Netflix (NFLX) - Get Report is the worst, with a 2.3% drop.
Alibaba has a similar first-half performance, down 2.6%. However, it’s doing far worse from the highs, down more than 30%.
Call me a hopeless optimist, but I feel that Alibaba can have a solid second-half performance.
Shares continue to hold the $210 to $212 area and have recently cleared downtrend resistance . That said, there’s plenty of overhead hurdles.
A push over $235 - thus putting it over all of the moving average hurdles mentioned above - could open up a run to $250, then $263. Above $275 and $300 is in play.
Keep the risk in mind but this could be a solid second-half rebound play.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.