Jemy Finance Market Research Team At Jemy Trade
2025-08-29
Alibaba Group Holding’s stock (BABA) has long been a focal point for investors, not only due to the company’s massive size and diverse business operations but also because of the significant fluctuations in its price trajectory. After a period of decline driven by regulatory challenges and the economic environment, the stock now appears to be in a technical position that could pave the way for a strong upward movement. This aligns perfectly with the analysis provided by the Jemy research team.
Technical Analysis: A Promising Leading Diagonal Pattern
The technical analysis conducted by the Jemy Market Research team on the BABA chart reveals a technical pattern known as a “Leading Diagonal” within the Elliott Wave Theory. This pattern typically forms at the beginning of a new uptrend and reflects a state of hesitation and slow momentum before a price breakout.
- The Pattern and Support Levels: This pattern consists of five sub-waves (waves 1-2-3-4-5) that move within a converging price channel, as clearly shown on the chart. What distinguishes this analysis is the identification of an invalidation point at $103.71. As long as the price remains above this level, the bullish scenario remains strongly in play.
- Expected Trajectory: The model’s forecast suggests that the stock has completed its corrective waves (A-B-C) and is now preparing to begin the powerful upward wave number (5) of the leading diagonal. This wave has the potential to push the stock to levels well above its current price, and may even surpass its recent highs.
Fundamental Analysis: Growth Drivers and Supporting News
The stock’s price movement cannot be separated from the company’s underlying fundamentals. Research has uncovered several factors that support the bullish outlook for BABA stock:
- Growth in Future-Oriented Sectors: The company has achieved strong growth in its non-traditional sectors, such as Cloud Computing, where it recorded an 18% increase in revenue during the last quarter. Additionally, products associated with artificial intelligence have shown “triple-digit” growth for the seventh consecutive quarter, indicating that the company is effectively capitalizing on global technological trends.
- Surpassing Earnings Expectations: Recent reports indicate that Alibaba’s earnings exceeded analysts’ expectations during the third quarter, which is attributed to the improved performance of its international businesses like AliExpress and Lazada.
- Support from Technical Analysts: The views of many analysts align with this positive trend. Some see that the stock has broken through important resistance levels around $120, while others set price targets as high as $141, and potentially much higher if the positive momentum continues. There is a broad consensus among analysts that the stock is currently in a “strong buy” zone.
Conclusion: Optimistic but with Caution
In light of the unique combination of strong technical analysis and positive fundamentals, it appears that Alibaba stock (BABA) has the potential to deliver exceptional performance in the coming period. While the technical analysis provides a clear roadmap for the potential price path, fundamental factors like growth in the AI and cloud computing sectors offer confidence in the company’s intrinsic value.
However, it is always important to remember that financial markets are not without risks, and any decline below the technical invalidation point ($103.71) could nullify this bullish scenario and would require a comprehensive review of the analysis.
