Shares in Alibaba Group Holding Limited (symbol ‘BABA’) incurred losses in the second quarter of around 7%. The company’s earnings report for the fiscal quarter ending June 2023 is set to be released on Thursday 10th of August, before market open. The consensus EPS is $1.50 compared to the same quarter of last year at $1.40.
‘As of 31/03/2023 the company is reporting a current ratio of more than 180% showing its ability to repay short term liabilities with the current assets in hand while the total assets outweigh the total liabilities at a ratio of more than 2:1 proving the financial strength of the company at least in the short term.’ said Antreas Themistokleous, an analyst at Exness
On the technical side the price is on the move to recoup the recent losses but faced sufficient resistance on the upper band of the Bollinger bands and is currently correcting to the downside. The 50 day moving average was about to cross the 100 day moving average confirming the bullish trend but the recent correction in the market has not allowed that just yet while at the same it pushed the Stochastic oscillator back to “neutral” levels.
If the price manages to make a valid break below the 38.2% of the Fibonacci level around $94 then the next area of strong technical support could possibly be found around the $88 price area which consists of the 50&100 moving averages as well as the 23.6% of the weekly Fibonacci retracement level.