The share is meeting an important level. We suggest caution because this point could stop the bullish trend.

The company still displaying poor fundamentals. Even if sales are expected to increase on the current fiscal year, its EBITDA is anticipated at lower levels than those registered in prior year. On the other hand, the security seems highly overvalued compared to its peers.

Graphically, the share is in the middle of a technical rebound that allowed it to reach the USD 79.75 short-term resistance and trendline. This area could trigger a sell signal for investors in an scenario of profit-taking. Furthermore, the rallying started once the USD 60.55 support area have been tested will be considered for upcoming sessions.

The graphical configuration argues to establish a short trade at current prices. The end of the technical rebound, the consolidation phase and overbought situation: Alibaba Group Holding has all the characteristics for short selling. The first objective will be fixed near the USD 68.84 short term support. This strategy should be protected by a stop-loss above USD 79.75.