Shares of Alibaba spiked nearly 4% on Thursday after the e-commerce giant became the latest tech company to form a partnership with an electric car company to develop a new car model.
In a statement released today, Alibaba announced that it would form a partnership with China’s SAIC Motors to develop a new battery-powered Sedan vehicle. This is the latest addition to the EV race as fossil-fuel-powered vehicles gradually fall out of favour.
Several tech companies have joined the race to develop their own EV versions following the runaway success of Tesla’s EV models in 2020. Chinese search engine Baidu is teaming up with Chinese automaker Geely. Apple is also rumored to be teaming up with Hyundai to make its own battery-powered smart cars, but Apple is yet to confirm these reports.
Alibaba is currently trading at 244.14 as of the time of writing.
Technical Levels to Watch
Today’s upside gap sent Alibaba’s daily candle above the 241.20 resistance. A pullback was rejected at this level, turning it into a support level. Extension of the upside is required to target the 18 November/15 December 2020 lows at 252.15. Above this level, 257.79 and 266.44 could form additional targets to the north.
On the flip side, failure to sustain the break above 241.20 could lead to a pullback that retests the 229.34 support, while further support is seen at 219.65 (2 July 2020/7 January 2021 lows) and 210.67.
Alibaba; Daily Chart