A look at Alibaba as rival e-commerce giant Amazon prepares to print second-quarter results

Alibaba Group Holdings, Ltd. BABA rose more than 3% on Tuesday, where the stock ran into a group of sellers who pressured it to almost completely fill that empty trading range.

The pre-market increase was due to news that Alibaba intends to apply for a main listing in Hong Kong, but as the day progressed, the China-based tech giant was under lower pressure from investors. general markets, which saw the S&P500 trading down about 0.7%.

Alibaba has failed to break into the US market since launching its e-commerce marketplace in the country in 2019, according to a report. The Amazon.com, Inc. AMZN rival originally aimed to recruit more than 1 million local businesses, but drastically reduced that goal to just 2,000 after the majority of its initial sellers canceled their subscriptions in 2020.

In an adverse reaction to the news, Amazon fell 4.41% to start Tuesday’s trading session, but rebounded slightly during the day.

The two e-commerce giants are expected to release their quarterly results in the near future, with Amazon releasing its second quarter results this Thursday after the market close and Alibaba set to release its first quarter 2023 results on August 4.

Together, the results will give traders and investors a good idea of ​​how soaring inflation, rising interest rates and a looming recession have affected major e-commerce companies in the United States and around the world. ‘foreign.

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Alibaba’s chart: After rising around 61% between May 12 and July 8, Alibaba entered a downtrend between July 11 and July 15 and has since traded sideways, possibly settling in a symmetrical triangle. on the daily chart. Alibaba is poised to hit the top of the triangle on August 2 and traders and investors can watch the stock break or fall from the pattern on above average volume ahead of that date to gauge whether the model has been recognized.

  • Although a symmetrical triangle pattern is often considered neutral, in the case of Alibaba the downtrend before the triangle print may have set Alibaba up in a bear flag pattern. If the pattern becomes recognized, the measured move is 22%, suggesting the stock could drop towards $83.
  • There is a gap above the Alibaba chart between $115.58 and $120.70 which was left on July 11. The gaps on the charts fill about 90% of the time, making it likely that Alibaba will rise to fill the empty trading range in the future, although it could take some time before that happens.
  • Alibaba has upper resistance at $104.44 and $110.06 and lower support at $96.17 and $89.95.

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