On 14 May, Alibaba released its first-quarter performance report:
→ Earnings per share: actual = $1.404, expected = $1.421;
→ Gross income: actual = $30.716 billion, expected = $30.502 billion.

The fact that earnings per share were slightly below expectations did not disappoint investors much, as on 16 May, Alibaba's share price (BABA) reached a yearly high, exceeding $86, forming a wide bullish candlestick with a close near the top (a sign of strong demand).

Positive sentiments were also driven by:
→ Another Chinese company, JD.com, released a report that exceeded expectations;
→ US regulators published information that well-known investor Michael Burry invested in Alibaba shares. David Tepper, head of the hedge fund Appaloosa Management, also holds a bullish outlook;
→ According to a note published on X (Twitter) by Citron Research analysts, Alibaba's share price could rise to $100.

According to the technical analysis of the BABA share chart:
→ The price broke upwards from a narrowing triangle (shown in red lines) – this is a bullish sign;
→ In April, the price did not reach the lower boundary of the triangle at its lowest point – this confirms strong demand;
→ The purple rectangle can be seen as the range in which large hedge funds accumulated BABA shares;
→ Extending the height of the rectangle upwards from its upper boundary, we get a resistance level of $87, which is where the current quotation is located.

It is also worth noting that the psychological level of $100 per BABA share acted as resistance last summer.

Given the above, it is reasonable to assume that BABA's share price could form a significant rally in the long-term with short-term corrections.

According to TipRanks, the average forecasted price for BABA shares in 12 months is $105.13.

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.