Alibaba (BABA) Stock Price and Forecast: Why did BABA rally 10% on Thursday?

  • Alibaba (BABA) stock rose nearly 10% on Thursday to close at $122.99.
  • Alibaba (BABA) shares one of the worst performers for 2021.
  • Regulatory concerns and delisting fears are likely to continue to weigh on BABA.

Alibaba stock recovered some ground on Thursday but the stock remains highly pressured with Chinese concerns elevated. The stock has fallen over 47% this year as most investors have reduced their exposure to Chinese related names on the back of heightened regulatory concerns from China. Fears of potential delistings are also a feature with DIDI moving its listing from New York to Hong Kong. 

Alibaba (BABA) stock news

Thursday may have seen some respite for BABA investors but this is most likely due to year end position closing. Given the share price fall there are likely many shorts that are now closing positions. There had been some bullish calls from strategic desks on a broad-based China tech play versus the Nasdaq so this may have seen some interest back into Chinese names. Thursday also saw the news that China is to reduce income taxes and focus on consumption recovery, a trend that would likely favour Alibaba. Alibaba is also considering selling its 30% stake in Weibo.

Alibaba (BABA) stock forecast

This starts to look a little more interesting now. Thursday's move has now put in place a double bottom at $110. Double bottoms are powerful reversal signals and this is confirmed by the upward sloping RSI, a bullish divergence. The MACD is also similarly upward sloping and has crossed over. Look for $110 to hold and $129 to be tested. A break could be powerful with a move to close the earnings gap at $141 next up. 

Support at $110 and $100, then $80 from the large volume profile there. Resistance at $129 and $141. 

Alibaba chart, daily


Like this article? Help us with some feedback by answering this survey:

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content

Recommended content

Editors’ Picks

EUR/USD retargets the 1.0700 region

EUR/USD retargets the 1.0700 region

EUR/USD added to Friday’s small gains and climbed further north of the 1.0650 level on the back of the vacillating price action around the US Dollar, all ahead of the publication of key US data releases later in the week.


GBP/USD drops amid increasing rate cut expectations by the BoE

GBP/USD drops amid increasing rate cut expectations by the BoE

The Pound Sterling lost ground against the US Dollar and dropped to its lowest level since November last year as investors began to price in a more dovish Bank of England. A scarce economic docket in the UK, left GBP/USD traders adrift to market mood and dynamics linked to the buck. Therefore, the pair trades at 1.2350, down 0.12%.


Gold pressures $2,330.00, risk of a steeper correction

Gold pressures $2,330.00, risk of a steeper correction

Gold trades on the back foot and loses over 2% on the day below $2,340. Easing geopolitical tensions cause XAU/USD to stage a deep correction, while the resilience of the US Treasury bond yields further weighs on the pair.

Gold News

XRP jumps above $0.50 as Ripple is set to file opposition brief in SEC lawsuit

XRP jumps above $0.50 as Ripple is set to file opposition brief in SEC lawsuit

XRP price climbed to a high of $0.54 on Monday, hours before Ripple files its response to the Securities and Exchange Commission (SEC) remedies-related opening brief. 

Read more

Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium

Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out

While it is hard to predict when geopolitical news erupts, the level of tension is lower. This week's US figures are set to shape the Fed decision next week – and the BoJ may struggle to halt the Yen's deterioration. 

Read more