r/baba
BABA gave back the whole pump… fakeout or just a normal pullback?
BABA dropped from $148 to $134; author suspects a fakeout and liquidity grab, citing macro pressure and China tech skepticism.
- Cheap valuation argument might hold the stock above $130.
- Potential double bottom formation could signal a reversal.
- Momentum from cloud and AI news provides upside catalysts.
- Price rejected immediately from $147-148, suggesting a fakeout or liquidity grab to trap late bulls.
- Macro pressure and China tech skepticism consistently drag the stock down despite positive news.
- Heavy volume on the selloff indicates strong selling pressure, questioning the cheap valuation support.
Looking at the BABAON/USDT 1h chart on BYDFi and yeah… pretty rough if you bought that breakout yesterday.
It ripped all the way up to around $147-148, then got rejected almost immediately, and now we’re already back near $134-135. Feels like every time Alibaba starts getting some momentum from cloud / AI news, either macro pressure or the usual China tech skepticism drags it right back down.
The volume on this latest selloff doesn’t look light either, which makes me wonder if the whole “cheap valuation” argument is actually enough to hold this above $130.
Are we maybe seeing a double bottom forming here, or was that move to $148 just a liquidity grab to trap late bulls?
I’m probably waiting for some actual consolidation before touching this again, but curious if anyone here is brave enough to long this level.