What’s Going On With Alibaba Stock Today? – Alibaba Gr Hldgs (NYSE:BABA)

Shares of Alibaba Group Holding Limited American (NASDAQ:BABA) are falling after a report alleged that the ecommerce company worked with the Chinese military to target the US.

What To Know: Alibaba has provided tech support for Chinese military operations according to the Financial Times. The outlet cites a White House national security memo containing declassified top secret intelligence.

The memo, which the Times was not able to independently verify, said that Alibaba provided the Chinese government and the People’s Liberation Army with access to customer data that includes IP addresses, WiFi information and payment records, as well as different AI-related services.

Alibaba said the allegations are false and that the information was leaked in order to malign the company.

BABA Analysis: Alibaba has shown impressive performance year-to-date, up 79.9%. This strong performance highlights the stock’s resilience, even as it faces short-term volatility. The Relative Strength Index (RSI) is currently at 42.94, suggesting that the stock is in neutral territory, indicating that it is neither overbought nor oversold at this moment.

Support for Alibaba is calculated at $130.06, which may provide a safety net if the stock continues to decline. Conversely, resistance is identified at $170.55, which will be a critical level to watch for any potential recovery. If the stock can regain momentum and break through this resistance, it could signal a return to bullish sentiment.

As the market digests this recent price action, the technical setup suggests that traders should be cautious. The proximity to the 50-day moving average could lead to a pivotal moment for Alibaba, where a bounce off this level could provide an opportunity for a rebound, while a break below could signal further weakness.

BABA Price Action: Alibaba shares were down 4.73% at $152.31 at the time of publication on Friday. The stock is trading within its 52-week range of $80.06 to $192.67.

Read More:

Image: Shutterstock