High volatility in Alibaba stock price on Wednesday which ended trading at $119.62

The Alibaba stock price gained 14.67% on the last trading day (Wednesday, 8th Jun 2022), rising from $104.32 to $119.62. , and has now gained 4 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the day the stock fluctuated 12.29% from a day low at $107.81 to a day high of $121.06. The price has risen in 6 of the last 10 days and is up by 45.05% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 56 million more shares were traded than the day before. In total, 92 million shares were bought and sold for approximately $11.03 billion.

Truist Securities is very positive about BABA and gave it a "$132.00 - $145.00" rating on May 31, 2022. The price target was set to 96.05+2.83.Over the last 90 days, this security got 1 buy, 10 sell, and 1 hold ratings.

The stockhas broken the very wide and falling short-term trend up. Firstly a slower falling rate is indicated, but this may very well be an early signal of a trend shift. On the reaction, there will be support on the roof of the current trend broken, which is $107.57, a level that may pose a second chance to hit a runner. According to fan-theory $151.40 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.

The Alibaba stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $100.44 and $91.40. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday, May 12, 2022, and so far it has risen 47.52%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.

Alibaba finds support from accumulated volume at $114.99 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $13.25 between high and low, or 12.29%. For the last week, the stock has had a daily average volatility of 5.94%.

The Alibaba stock is extremely overbought on RSI14 (77). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

Alibaba holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.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 to a Hold/Accumulate candidate.