Can $BABA bounce after earnings? via /r/wallstreetbets #stocks #wallstreetbets #investing

Can $BABA bounce after earnings?

While the Russia-Ukraine conflict has weighed on the broader market recently, Alibaba shares have been falling for the last 16-months as the Chinese government continues its crackdown on big tech. $BABA is down around 65% from the all-time-highs it hit back in October 2020, and is now testing the key $110 support level ahead of its Q4 report.

The company has missed 2 out of the last 3 earnings estimates, and a continuation of this trend in the upcoming results might be the final push needed for $BABA to break this multi-month horizontal support, opening the possibility for losses to accelerate.

However, given the amount of bearish pressure the stock is already under, a strong performance over the festive period might be enough to cause a significant rebound. This could allow $BABA to test a breakout above the resistance around $130, and potentially attempt to form a new leg higher to buck the longer-term downtrend.

All trading carries risk, but this could be one to keep on the watchlist with earnings due before the open on Thursday.

Submitted February 23, 2022 at 07:29PM by City_Index
via reddit