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

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