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Technical view: BABA (BABA)

Technical view

BABA is now in stage #2. China reopening its economy after a draconical Covid shutdown is helping Chinese stocks. The CCP also reversed or at least is trying to, their policy on the economy and private businesses. They agreed to allow for account audits by the US PCAOB which literally averted the risk of delisting the Chinese stocks. But can we trust the CCP? Or is this stock rally just a pump? The weekly chart moved the stock from a rapid decline up to the long-term bearish trend, and the stock managed to close above it. The question is now, will it hold and continue higher? Or will the buyers who bought at these levels dump the stock here?

Technical view weekly

Fundamentally, the stock is offering great value, and it is in a buy zone right now. Based on the fundamental data, the earnings are poised for a further decline in 2023, but it may change since the economy is reopening. The stock should start improving from here. I think now is the time to start buying the stock. Remember, the goal is not to fish for the bottom but buy when it may be safe to do so.

Technical view weekly

Technical view weekly

The stock is now BUY

This post was published in our newsletter to our subscribers on Saturday, December 24th, 2022. If you want to learn more about our stock technical analysis subscribe to our weekly newsletter.

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