r/baba
BABA gave up all the gains from the recent pump... classic fakeout or just a healthy retrace?
BABA gave up recent gains to $134 after a spike to $148, with the author suspecting a fakeout driven by macro pressure and skepticism.
- Cheap valuation argument might keep the stock above $130.
- Potential double bottom formation if the current support holds.
- Fast rejection from $148 suggests a fakeout or liquidity grab.
- Macro pressure and skepticism around Chinese tech drag the stock back.
- Heavy volume on the drop questions if the $130 level will hold.
Looking at the BABAON/USDT 1-hour chart on BYDFi, and it’s honestly a bit painful to watch if you bought the breakout yesterday. We saw that massive spike up to $147-148, but the rejection was just as fast, and now we’re sitting back down near $134-135. It feels like every time Alibaba tries to sustain a rally on cloud or AI news, the macro pressure or just general skepticism around Chinese tech drags it right back to the starting line. The volume on this latest drop looks a bit heavy, which makes me wonder if the "cheap valuation" argument is enough to keep it above $130 right now. Are we looking at a double bottom forming here, or was that moving to $148 just a liquidity grab to trap more bulls? I’m leaning towards waiting for a consolidation phase before touching this again, but I’d love to hear if anyone is actually brave enough to long this level.