Alibaba slumped on the monopoly investigation

downtrend chart
Alibaba (9988), a tech giant, is under an investigation into alleged monopolistic practices by the State Administration for Market Regulation. The share prices of Alibaba opened 3% lower and drifted lower during the trading session.

From a technical point of view, the technical outlook of the stock turned to bearish after breaking below the rising trend line. In addition, the RSI indicated a bearish divergence signal. Currently, the prices also formed a lower top and a lower bottom and also broke below the declining triangle. All of the above technical events would suggest the bearish outlook. 

Bearish readers could set the resistance level at HK$265, while support levels would be located at HK$205 and HK$185.


Source: GAIN Capital, TradingView
Related tags: Equities Tech Stocks

Open an account in minutes

Experience award-winning platforms with fast and secure execution.

Live Trading Webinars

Our interactive webinars, led by our industry experts, come highly recommended and can help provide your trading with the edge it needs.
Economic Calendar