Ongoing decline · week 5
Alibaba loses 3.5% and sets a new 30-day low on contracting volume
Our view last week
Last week's bounce didn't hold: Alibaba slips 3.1%, and in the weekly bar sellers dominate to an extreme, with buying below 25% of volume and distribution building. Alibaba stock stays below its 50-week average, squeezed between resistance in the 110.2 area and the 7-day low in the 107.3 area. The technical analysis reads a sell signal pushing again, though on contracting volume.
This week's summary
The 107 area was not defended: Alibaba loses 3.5%, its 2nd straight weekly decline, and ends the week at a new 30-day low in the 105 area. A week ago Alibaba stock was squeezed between that support and resistance in the 110 area; now the technical analysis reads a decline that carries on with contracting volume, a MACD histogram shrinking for 7 weeks and negative money flow. Among US stocks on a sell signal, this swing trading short is up 6.5% since entry.
IQS Phase
67
in tension
Signal Strength
54
downtrend making lower lows, pace holding
Sizing
STANDARD
Ranking
#32 / 175
US stocks
Trade P&L %
+6.53%
from signal to date, no stop loss
Alibaba (BABA) weekly chart — EMA50 · MACD · VWAP
Weekly chart · EMA50 · MACD · VWAP · Source: TradingView
Rank position
ranks 32nd among the 175 sell signals for US stocks in our ranking, with a signal strength of 54 out of 100.
Sector context
SectorGrowth Tech
Benchmark ETFXLK
Sector regimein strong phase
Performanceweekly +1.80% · monthly +8.83%
BABA belongs to the growth tech sector (reference ETF XLK). The sector is classified in strong phase according to our weekly reading.
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