Alibaba (BABA) technical preview March 16, 2015

BABA shares hovering around all-time lows, just above $80. Price is back down to its post-IPO October 2014 levels. Expiration of the lockup period and strong domestic competition in China by TCEHY are negatives for BABA shares. If $80 is penetrated we are entering uncharted territory. The current downtrend would be reversed temporarily only with a close higher than $85. The January 29th gap between $92 and $98 is the upside target in case of a rebound. Overall, BABA look terrible from a pure technical analysis perspective and should be avoided for the time being.

BABA daily chart (8 months):

baba

Chart courtesy of http://www.StockCharts.com

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