Alibaba powers up with caution - Analysis - 17-10-2018

Chinese Alibaba's stock surged 3.77% in the last session, or 5.44 points, with positive signals from the RSI, countered by the dominance of the downward correctional wave in the short term, with negative pressure from the 50-day SMA. 

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

Expected trend for today: Likely Bearish