BABA Stock News: Alibaba Group Holding posts solid intraday advance

NYSE:BABA roughly 10% up for the week amid prevalent market's optimism.
The Chinese government has officially started an investigation into AliBaba’s hometown.
The Hang Seng Index officially hit bearish territory last week as the Chinese tech slide continues.

Stocks Reporter FXStreet

Update, August 28: NYSE:BABA added 6.61% on Tuesday, to end the day at $171.70 per share. It lost momentum ahead of the daily close, as it topped $174.15 intraday. Market participants are cautious as the Jackson Hole Symposium looms, and whatever US Federal Reserve chief Powell has to say about the future of monetary policy. Speculation about delayed tapering has provided support to Wall Street ever since the week started.

NYSE:BABA may have finally found support as the stock bounced off the level at $155.50. This support level was first established way back in 2019, which shows how far shares of Baba have fallen during the recent correction. On Monday, AliBaba gained 3.10% and closed the first trading session of the week at $161.06. It was a bullish session to say the least as investors scooped up dips that came during last week’s August OPEX week. The NASDAQ paced the broader markets, gaining 1.6% on the strength of tech. Chinese stocks also rebounded after the first day of no new reported COVID-19 cases since July.

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The Chinese government has officially started a probe into local officials in the city of Hangzhou which is conveniently where both AliBaba and Ant Group are headquartered. The investigation is centered around Hangzhou’s Municipal Party Committee Secretary Zhou Jiangyong. The belief is that the CCP is looking into a corruption probe that suspects Zhou of basically what amounts to insider trading for AliBaba and Ant Group shares. The timing seems suspicious, and it may not be long until Jack Ma is once again back under the microscope of the CCP.

BABA stock price target

Last week the Hang Seng Index officially dipped into bearish technical territory, as the Chinese tech stocks continued to tumble. Billions of dollars in market cap have been lost, and some investors may see this as a generational buying opportunity. The bearish territory shows just how beaten down Chinese stocks are, as the move coincides with all three major U.S. indices at or near all-time highs.

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Stocks Reporter

FXStreet

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