Alibaba: End of Stock Decline in Sight?

Last Updated: 7. November 2023By

As an attentive observer of world events, you are almost daily confronted with headlines about the trade conflict between the United States of America and the People’s Republic of China! At its core, it is about the US trade deficit, the protection of intellectual property and technology transfers to the Middle Kingdom.

Alibaba stock suffers from import tariffs! The US response in the form of import tariffs of several hundred billion US dollars is putting considerable pressure on the Alibaba stock. Since its all-time high in October 2020, the security has mostly been in sales mode.

Alibaba business development; Source:

Fundamental development Looking at the fundamental figures, you will surely first notice the continued sales growth at the same time as more or less stagnant profits. This indicates that Alibaba is still performing well in the huge Chinese domestic market, but that the decline in exports to the USA is weighing on margins.

Alibaba stock (ISIN US01609W1027) – 1 year in daily chart; Source:

Chart technical development at Alibaba In the long term, it looks like the price drop may have found a bottom with the low in November 2022. Since then, a sideways range has developed at a slightly higher level. After the weak phase of the past few weeks, the strong last daily candle suggests that it could soon go up again. Please wait for the blue 50-day line to at least even out before looking for long setups.

Conclusion Alibaba could be interesting just because of the size of the Chinese domestic market despite the trade sanctions. Do not forget the risks and do not forget to define exit marks and adhere to them consistently.