Alibaba: False Breakdown as Earnings Approach
One of the striking things about this earnings season has been the broad strength across technology and e-commerce. Whether you’re looking at
SHOP
,
TWLO
or
PYPL
, one company after another has rallied despite the coronavirus pandemic.
And now one of the biggest names of all, Alibaba, has some interesting patterns as its quarterly numbers approach.
Two things stand out on BABA’s chart. First is the $188-190 support zone. That area was first important back in November 2017, then again in March-April 2019.
The bears tried to take a stab at that same level last week, but were stopped dead in their tracks the next day.
This level is also meaningful as a confluence area with the rising 200-day simple moving average (SMA).
Speaking of moving averages, BABA had a false breakdown under its 50-day SMA a few sessions ago. Its rebound back above that level today could be another signal for the bears to back off.
The next earnings date hasn't been officially announced yet, but TradingView estimates it will be on May 11.
SHOP
,
TWLO
or
PYPL
, one company after another has rallied despite the coronavirus pandemic. And now one of the biggest names of all, Alibaba, has some interesting patterns as its quarterly numbers approach.
Two things stand out on BABA’s chart. First is the $188-190 support zone. That area was first important back in November 2017, then again in March-April 2019.
The bears tried to take a stab at that same level last week, but were stopped dead in their tracks the next day.
This level is also meaningful as a confluence area with the rising 200-day simple moving average (SMA).
Speaking of moving averages, BABA had a false breakdown under its 50-day SMA a few sessions ago. Its rebound back above that level today could be another signal for the bears to back off.
The next earnings date hasn't been officially announced yet, but TradingView estimates it will be on May 11.
