Alibaba ends cautiously higher - Analysis - 27-05-2022

Alibaba's stock (BABA) surged 14.79% in the last session, settling at a four-week high at 94.48, with trading volumes surpassing 50.8 million shares, above 10-day averages of 23 million shares, after reporting forecast-beating first quarter profits, lessening fears about the impact of Covid 19 restrictions in China. 

The stock is climbing alongside the main downward medium-term trend line, with negative pressure from the 50-day SMA, coupled with positive signals from the RSI.

Therefore we expect the stock to return lower, targeting the pivotal support of 73.28, provided the resistance of 108.70 holds on.

Expected trend for today: Bearish