Yesterday, Alibaba (BABA) shares dropped to their lowest level since late April. The decline followed the company’s announcement of a planned bond issuance totalling approximately $1.53 billion, with a maturity date set for 2032. The funds will be used to support the development of Alibaba's cloud infrastructure and expansion of its international e-commerce business.

The market’s negative reaction may stem from concerns over rising debt levels and the potential return on these investments.

Technical Analysis of Alibaba (BABA) Share Price

When analysing the price movements of BABA shares in 2025, two key trading ranges stand out:
→ $126–145: This range originates from the long bullish candle on 20 February, following the release of a strong quarterly report;
→ $96–103: This zone was established in late April, as supply and demand stabilised around the psychologically significant $100 level.

The upper range has since acted as a resistance zone, with the price reversing from it in mid-May. The lower range has served as a support area, particularly in early April when the stock came under pressure after tariff-related headlines.

The current price action is notable in that Alibaba shares have:
→ Broken through the June support level at approximately $111.92;
→ Formed a bearish A-B-C structure, marked by lower highs and lower lows.

Using Fibonacci extension analysis, we can reasonably assume:
→ The $111.92 level is now likely to act as resistance;
→ The next potential target for the ongoing downtrend (leg C→D) lies at the 1 Fibonacci level ($100.55) — aligning closely with the previously identified support zone.

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