Evaluation of Alibaba stock downgraded after the last trading session.

The Alibaba stock fell by -3.14% on the last day (Monday, 9th Nov 2020) from $299.95 to $290.53. During the day the stock fluctuated 4.65% from a day low at $290.50 to a day high of $304.00. The price has been going up and down for this period, and there has been a -5.32% loss for the last 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. on the last day, the trading volume fell by -1 million shares and in total, 22 million shares were bought and sold for approximately $6.40 billion.

Barclays is very positive to BABA and gave it a "Overweight" rating on October 20, 2020. The price target was set to $320.00 - $360.00.Over the last 30 days, this security got 2 buy, 0 sell and 0 hold ratings.

The stock lies in the lower part of a wide and strong rising trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at $288.63 is broken, it will firstly indicate a slower rate of rising, but may also be an early warning for a trend shift. Given the current short-term trend, the stock is expected to rise 17.79% during the next 3 months and, with a 90% probability hold a price between $339.98 and $381.67 at the end of this 3-month period.

There are few to no technical positive signals at the moment. The Alibaba stock holds sell signals from both short and long-term moving averages. On corrections up, there will be some resistance from the lines at $296.43 and $296.38. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Tuesday, October 27, 2020, and so far it has fallen -8.39%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 months Moving Average Convergence Divergence (MACD). Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

Alibaba finds support from accumulated volume at $287.75 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock has average movements during a day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $13.50 between high and low, or 4.65%. For the last week, the stock has had daily average volatility of 4.46%.

Alibaba stock holds several negative signals and despite the positive trend, we believe Alibaba will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy Candidate to a Sell Candidate candidate.