Alibaba Share Price Falls for 5th Consecutive Day After Chinese Regulator’s Hammer

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Written By: Eno Eteng (MSTA)
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    Summary:
  • Chinese regulators impose a fine on Alibaba and several other internet companies, driving the Alibaba stock price lower for the 5th straight day.

It would seem Chinese regulators are not in a jocular mood, as they blaze their guns after some of the top Chinese brands. The Alibaba share price and those of Didi, both US-listed stocks, are heavily red after Chinese authorities hit both firms and Tencent with punitive fines after declaring them guilty of illegal merger deals.

Alibaba’s share price has taken a heavy beating since a widely publicized controversial speech by founder Jack Ma criticizing the banking system and the regulatory regime in China in late last year.  

Alibaba’s stock fell by 0.99% on Wednesday, adding to four previous hefty losing sessions. 

Technical Levels to Watch

Alibaba’s stock price is challenging the 208.01 support. If this level breaks down, 204.32 (13 May low) serves as the new target to the south. Below this level, 198.97 and 193.92 (9 April 2020/14 May 2020 lows) serve as further downside targets.

On the flip side, a bounce on 208.01 allows for a retracement pullback to the north, targeting 211.82 initially. Other targets further north include 219.65 and 229.34, where the 28 June high is located.

Alibaba: Daily Chart

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Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.

Published by
Written By: Eno Eteng (MSTA)