Alibaba climbs alongside downward trend line - Analysis - 08-11-2018

Chinese Alibaba's stock surged 3.43% in the last session, or 5.06 points, while trading alongside the downward correctional trend line in the short term, with negative pressure from the 50-day SMA, coupled with negative signals from the RSI after reaching overbought levels. 

Therefore we expect the stock to return lower, especially if it settled back below 148.85, which represents the ratio 50% of Fibonacci retracement levels for an ascending wave in the medium term (from 86.01 to 211.70), targeting the next support at 134.02, which represents the ratio 61.8%. 

Expected trend for today: Likely Bearish