Alibaba (BABA) – Bearish Setup Forming

BABA

A descending triangle is forming on the chart, with strong resistance around $118 and horizontal support near $102. The structure suggests a potential breakdown, targeting a move of ~−9.8%.

Key observations:
• Price rejected from the descending trendline multiple times
• Stochastic turning down from the overbought zone
• RSI below 50 – room for further downside
• Bollinger Bands show compression, possibly preceding a breakout

📉 Business context:
Alibaba is facing ongoing challenges in its core business. Competition in the e-commerce and cloud sectors has intensified, import/export tariffs are putting pressure on margins, and regulatory oversight from Chinese authorities remains strict. These headwinds may weigh on investor sentiment and stock performance.

My short scenario:
If the price breaks below the $111–$110 zone with volume confirmation, I expect a move toward $102–$100.