Alibaba BABA-N , (Friday’s close US$135) declined from US$316.62 in October, 2020 (not shown) to US$57.52 in October, 2022 (A) below a falling trendline (dotted line) and below the falling 40-week Moving Average (40wMA). The stock then settled in a wide trading range mostly between US$69 and US$125 (dashed lines). Alibaba had a breakout above this range at the beginning of the year (B) and then pulled back and found support at its 40wMA (C). The recent price action suggests the resumption of the uptrend (D); a decisive rise above $145 would confirm it. Only a sustained decline below the 40wMA (currently near $115) would be negative.

Point & Figure measurements provide targets of $155 and $170. The large trading range (dashed lines) supports higher targets.

Monica Rizk is the Senior Tec

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