China’s technology stocks have, interestingly, become part of the AI Bull Market, showing some ups and downs over the past year. A notable example is Alibaba (BABA), which seems to be making a comeback after reaching a low point in late 2022. It appears that the charts are forming some positive patterns, like round bottoms, suggesting that long-term momentum looks promising with favorable indicators such as the monthly MACD and 12-month moving averages. Recently, Alibaba broke through the lower limits of its monthly cloud models, indicating new long-term potential.
After an impressive start to the year, Alibaba entered a corrective period back in February, which now seems to have concluded, given the recent weekly MACD buy signal. This suggests a significant shift in medium-term momentum, with upside targets around a Fibonacci retracement level of 38.2%, nearly hitting $155. The comparison between BABA and the S&P 500 looks optimistic as well; the price is trending upwards, supported by a 40-week moving average, creating a favorable environment for BABA to outperform.
Short-term trends are also positive for BABA, as it hasn’t seen the same level of growth as many U.S. tech stocks recently. It’s been trading steadily, with a recent short-term uptick after navigating beyond its 50-day moving average, which is hovering close to $117—this level serves as initial support. Observing how it’s positioned, there’s potential for it to push up towards February’s resistance near $143. Overall, it seems that Chinese technology stocks like BABA are well set for the future, whether you’re looking at absolute or relative terms.
