Alibaba Is Great Risk Reward Setup For Investors As It Shows Reversal Pattern On Weekly Chart And Improving Fundamentals

Alibaba (NYSE: BABA) Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally.

Recently Reported Earnings showed Alibaba has achieved a top-line growth in double digits for the first time since the second quarter of 2021 (September). This significant progress underscores a much-awaited recovery following multiple challenges that hindered its growth. These challenges included an extensive clampdown by the Chinese government to address anti-competitive behaviors, the cancellation of Ant Group's planned IPO, a gradual return to typical levels of cloud demand as pandemic-related restrictions eased, and the sluggish economic recovery efforts throughout this year. Revenue climbed 13.9% yr/yr to RMB 234.16 bln, exceeding analysts' forecasts of high-single-digit growth, helping drive EPS of RMB 17.37, a 48.1% expansion from the year-ago period. Moreover, various strategic assets such as international retail, Cainiao, and local services have re-entered a path of robust growth, accompanied by a significant  enhancement in their profitability outlook. 

Although, Numerous concerns continue to linger around Alibaba, especially considering its historical Regulatory challenges. Nevertheless, its Q1 report might signify an impending shift in direction. 

Technical Perspective 

Weekly Chart on $BABA is now showing a strong Reversal Pattern after many weeks of consolidation at proven support levels. 90-91$ is key pivot point here for trigger to upside momentum towards and 100 and more upside once it clears the 100 level 

Short Term Trading  

For Short Term Traders, a risk level of 85 area provides good opportunity on reversal play. Targets of 100 - 110 will be measured move based upon this Technical Setup 

Long Term Investing 

Long Term Investors can see Accumulation on weekly volume Bars. A risk of 78-80 area can provide one  risk to 3-4 Reward based on this setup. 

Both Long and Short Term Traders should consider the confirmation of this Technical Setup breakout over these points. Please review Weekly Chart Below for this particular Setup

Summary 

In light of both technical and fundamental setups, BABA is currently situated favorably and warrants consideration from investors who have been seeking an opportune entry point into this Chinese powerhouse. 

Please follow my on Twitter/X for more such analysis or join our Educational Investing Forum for in depth Analysis 

This content is for informational purposes only and is not intended to be investing advice.