ALIBABA jumps more than 4% on Jack Ma shedding control of Ant Group
Alibaba founder Jack Ma cuts voting stake in Ant Group to 6%.
BABA stock jumps more than 4% on the news.
Jack Ma’s control of Ant Group has placed Alibaba at odds with Chinese regulators.
Alibaba stock has broken above $105 resistance level, eyes $125 next.
Alibaba (BABA) founder Jack Ma has buoyed shares of the Chinese online retail leader after formally ending his control of Ant Group. Bringing another part of Alibaba’s upheaval to a close, Jack Ma reduced his voting power in two holding companies that control a majority of Ant Financial. This former Alibaba subsidiary owns Alipay. Alibaba stock shot up more than 8% in Hong Kong on the news and has risen 4.6% in the US premarket to $112.35.
Alibaba stock has blown through the $103 to $105.25 supply zone that has held BABA in place since July 2022. The resistance zone pushed prices lower in three weeks between late July and late August of last summer. With the stock moving well above $112 in the premarket, this region will likely become support in the subsequent weeks.
BABA stock was already up 16.8% year to date before this news and will likely exceed 20% once the regular session gets going. After muddling through two horrible years for Alibaba stock, investors should take this as a positive sign that the worst must be behind them.
ALIBABA TECHNICAL ANALYSIS DAILY CHART:
In daily chart Alibaba is currently trading in up channel.
Alibaba is currently trading above all SMA.
RSI is in buying zone which shows bullishness. And stochastic is suggesting up trend.
Alibaba immediate support level is at 110.09 & resistance level is at 113.55
HOW TO TRADE IN THIS WEEK
Alibaba is trading in up channel; it will continue to trade upside until any trend reversal so, remain bullish on it.TRADE SUGGESTION: BUY AT 113.55 TARGET AT 117.20, SL AT 110.71