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.