Alibaba Stock Price Is About To Hit A Major Buying Zone
Alibaba (NYSE: BABA) stock price might be close to forming a bottom as the bears are getting exhausted. The stock of the Chinese tech giant has seen a sharp sell-off since the announcement of its Q3 earnings.
In the third quarter results, Alibaba reported a 14% YoY increase in revenue which remained at $32.2 billion. However, it was still not enough to keep investors bullish on the stock and it has corrected 10.5% since then.
According to the latest Alibaba news, the company’s research arm has reportedly shut its quantum computing lab amid a restructuring process at the firm. The lab equipment has been donated to Zhejiang University.
It seems that the downtrend in Alibaba shares might be about to end, as the following chart shows bullish divergences. Due to this reason my Alibaba stock price forecast is not that bearish. I won’t be surprised if the stock reverses after hitting the range lows around $72.5. This could be a good buying opportunity.