That’s after 11 daily declines in the past 12 sessions, three consecutive weekly declines and five weekly declines in the past six weeks.
It’s also as Alibaba works on its fifth monthly decline in the past six months. Despite today’s strong bounce, shares are still down 4.5% for the month of December.
Plain and simple, this stock has been decimated. It prompted our writers to ask, What Is Going On With Alibaba Stock?
Investors simply can’t catch a break.
A few days later Alibaba stock was hammered on earnings, falling 11% in a single day and accelerating the recent losing streak.
Recently 66% off its October 2020 all-time high and currently down about 61.75%, is it still too early to call a bottom?
Trading Alibaba Stock
The risk/reward of calling a bottom in Alibaba has not been very rewarding over the past year.
Each support level has faded away, while previous support areas have also turned to resistance.
At first, Alibaba bounced from the 50-week moving average, then it faded from this level as it turned to resistance. Once Alibaba couldn’t reclaim the 2020 coronavirus lows, that’s when traders knew this stock was in trouble.
Alibaba knifed right through the prior $120 high from 2014. However, it bounced hard off the $109 area.
There it found the 261.8% downside extension from the current range. It was also the breakout level in 2017.
That’s not to say Alibaba stock has bottomed or that it’s out of the woods. But for now, this seems like a low that aggressive bullish traders can measure against (at $108.70).
A break of this mark may very well put $100 in play.
On the upside, let’s see if Alibaba can reclaim the November low at $126.13. Additionally, a move over $130 could really get things started and allow the stock to squeeze higher.