The Share Price of Alibaba (BABA) Has Reached Its Yearly High

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.

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