After the surprisingly good results of Alibaba (NYSE:BABA) on Feb. 24, many investors hoped that these results would trigger a major reversal. However, a bullish reversal is still nowhere in sight, and we continue to expect that the bloodbath in Alibaba isn't over.
New investors in particular, shouldn't panic. A merciless two-year bear market may be coming to an end sooner than most investors assume.
Technical View
As expected, Alibaba failed to build a new high above the resistance at $138.70, downward pressure remains and we already saw massive weakness in the last trading days.
Since Jan. 18, 2022, the stock has fallen more than -24%. Therefore, our forecast came true and we do not see any bullish breakout opportunity from the current downtrend at the moment. The next target is the $88.90 to $83.06 range, further sell-offs are possible depending on the volatility.
Afterwards, a small corrective recovery (red wave (iv)) should take place, a final sell-off below $80 should follow. The correction should come to an end in the range of 70$ to 80$. An exact price target can be calculated after the completion of the corrective wave (iv).
We will ensure to keep investors informed about this development. Investors in Alibaba should remain optimistic, a very large 1-2 cycle wave is coming to an end in the next few months. In our last analysis, we explained Alibaba's wave cycle and highlighted the massive opportunities in the future. In the next few years, prices above $200 to $300 are quite realistic.
