Alibaba Stock Could Bounce Despite Trade Tensions

Group 1 - Alibaba Group Holding Ltd (NYSE:BABA) shares are currently trading at $106.55, down 2%, amid broader market tariff uncertainty, marking a potential third consecutive loss, although the stock has a 26.8% gain for 2025 and a support level at $100 [1] - The stock is trading near a trendline that has historically led to bullish returns, with shares being above the 200-day moving average for at least eight of the last ten trading days and spending 80% of the past two months above this trendline [2] - Historical data shows that after similar conditions in the last five years, the stock was higher one month later 67% of the time, with an average gain of 6.9% [2] Group 2 - Options trading appears to be an affordable strategy for investors, as indicated by BABA's Schaeffer's Volatility Index (SVI) of 32%, which is in the 8th percentile of its annual range, suggesting low volatility expectations [3] - Alibaba stock has typically outperformed these low volatility expectations over the past year, reflected in its Schaeffer's Volatility Scorecard (SVS) rating of 87 out of 100 [3]