Alibaba tests downward trend line - Analysis - 01-06-2022

Alibaba's stock (BABA) rose in the intraday levels amid positive signals from the RSI, touching the resistance of the 50-day SMA, while testing the main downward short-term trend line, marking a profit of 2.83% in the last session, or 2.64 points, and settling at 96.05, with trading volumes surpassing 33.7 million shares, above 10-day averages of 25.1 million shares. 

The stock benefitted from Chinese measures to strike down restrictions made for controlling Covid 19, with Shanghai reopening once more. 

We expect the stock to decline and target the support of 82.75, provided it trades alongside the downward trend line. 

Expected trend for today: Bearish