Alibaba Stock Forecast: $86.50 Could Be the New Short-Term Target

Bearish Alibaba stock forecasts have hit the market again after the Alibaba share price, and other Chinese tech stocks fell heavily in Hong Kong trading this Tuesday. As a result, premarket trading in the US has mirrored the sour sentiment, with the stock trading at 93.54 after closing a tad higher on Monday at 94.70.

The slide in Alibaba, Bilibili and several other Chinese tech equities were hit by the latest regulations from the Central Cyberspace Administration in China. The regulator said it was launching a “special action” to rid the country’s online live broadcasting and short videos space of what it deems to be illegal content. The agency says the action would last for two months. As a result, Alibaba fell more than 4% in Tuesday’s Hong Kong trading session. Tencent Holdings Ltd fell nearly 2.8%.

The planned delisting of DiDi Global from US exchanges is also souring sentiment around Chinese stocks this Tuesday. The Chinese ride-hailing app fell close to 20% on Monday after the company confirmed that a shareholder vote on voluntary delisting from the US exchanges would go ahead.

Alibaba stock forecasts for the medium-term remain positive. Last week, Citi cut its price targets for the stock, but this remains well higher than current price levels. So any dips in price could provide good buying opportunities.

Alibaba Stock Forecast

The Alibaba stock forecast shows that the breakdown of the 98.63 support has opened the door for a potential slide towards 85.70 (23 December 2016 and 11 March 2022 lows). Only when this support breaks down can we see a potential drop towards the 80.00 psychological support (15 March high). Additional downside targets reside at 2269.38 (22 October 2015 low) and the 9 February 2016 low at 60.03.

On the other hand, a lack of follow-through selling action could allow the bulls to initiate a break of the 98.63 resistance mark. Once this break is complete, the 109.97 barrier (6 April 2022 highs) comes into view. Additional targets to the north are seen at 120.27 and 129.88 (17 February 2022 high). 

Alibaba: Daily Chart

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