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Alibaba stock drops 3.6%, but the buy signal stays protected by the breakeven stop

Alibaba stock falls for a second straight week as sellers stay dominant and distribution keeps building. The buy signal remains active, up 3.8% with the stop now at breakeven — full weekly technical analysis and price action trading setup inside.

Alibaba stock drops 3.6%, but the buy signal stays protected by the breakeven stop
Alibaba: second weekly drop, stop now at breakeven

Alibaba stock drops 3.6%, but the buy signal stays protected by the breakeven stop

August 21, 2026

Our view last week

After two weeks of rebound, Alibaba stock reverses course: the week just closed drops 3.6%, with sellers turning sharply dominant in the last bar and distribution on the rise. These are the same caution flags that stayed lit last week without stopping the rally: now they are being confirmed. The buy signal, in its fourth week of this technical analysis, is still up 7.69%, having already hit its first target.

This week's summary

Alibaba's decline runs into a second straight week: sellers stay extremely dominant on the last candle and distribution keeps building, while the stock slips below its 50-week average. Alibaba stock remains inside an active buy signal now in its 5th week, up 3.8% since entry: the first target has already been hit and the stop has moved to breakeven, locking the gain in. This week's technical analysis confirms the same caution flags that were already flashing seven days ago.
Open BUY ·5th week from start ·US stocks ·T1 ★ See Gold version →
IQS Phase
41
ordinary
Signal Strength
59
medium
Sizing
STANDARD
Ranking
#82 / 167
US stocks in progress
Trade P&L %
+3.80%
from signal to date, no stop loss

Chart · Weekly — EMA50 · MACD · VWAP

Weekly chart · EMA50 · MACD · VWAP · Source: TradingView
How to read this pageA visual guide to the post, card by card

Rank position

ranks 82nd among the 167 Longs already running for US stocks in our ranking, with a signal strength of 59 out of 100.

Sector context

SectorGrowth Tech
Benchmark ETFXLK
Sector regimeweak phase
Performanceweekly -3.53% · monthly +1.69%

BABA belongs to the growth tech sector (reference ETF XLK). The sector is classified weak phase according to our weekly reading.

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