r/baba
That BABA rejection was brutal... fakeout or just a healthy retrace?
BABA faced a brutal rejection from $148 to $135 amid heavy sell volume, leaving traders questioning if it's a bull trap or a double bottom.
- Potential double bottom forming near the $130-$135 support level.
- Underlying interest in cloud and AI catalysts drove the initial breakout.
- The 'cheap valuation' argument might still provide a floor for the stock.
- Violent rejection from $148 with heavy sell volume indicates strong resistance and a potential bull trap.
- Broader macro pressure and skepticism around Chinese tech continuously drag down rallies.
- Tokenized pair charts look sketchy, suggesting weak off-hours momentum.
Man, watching this price action is painful if you bought yesterday's breakout. We saw that massive spike up to $147-148, but the rejection was just as violent, and now we're sitting all the way back down near the $134-135 range.
It feels like every time Alibaba tries to sustain a rally on cloud or AI news, broader macro pressure or just general skepticism around Chinese tech drags it right back to the starting line. The sell volume on this latest drop looked pretty heavy too, which makes me wonder if the "cheap valuation" argument is really enough to keep it above $130 right now.
I was looking at the 1-hour chart on the BABA tokenized pair (BABAON/USDT) over on BYDFi since I use it to track off-hours movement, and it’s honestly looking sketchy.
Are we looking at a double bottom forming here, or was that push to $148 just a liquidity grab to trap late bulls? I'm personally leaning towards waiting for a solid consolidation phase before touching this again. Is anyone actually brave enough to go long at these levels?