260-day moving average's 20-day average true range (ATR)
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Signal Says Alibaba Stock Could Bounce Off Bullish Trendline
Schaeffers Investment Research· 2026-03-02 20:47
Core Viewpoint - Alibaba Group Holding Ltd's stock is experiencing a decline, currently trading at $142.97, marking its fourth consecutive loss, despite a 24% gain over the past nine months. The decline is attributed to recent weakness in the tech sector and geopolitical tensions, particularly the U.S.-Iran conflict, although the stock is nearing a historically bullish trendline [1]. Group 1 - Alibaba's stock is down 0.8% and has reached its lowest level since September, but it has a significant nine-month lead of 24% [1]. - The stock is currently within 0.75 of the 260-day moving average's 20-day average true range (ATR), having remained above it 80% of the time in the last two weeks and in 80% of the last 42 trading sessions [2]. - Historical data shows that similar signals have led to a 67% chance of the stock being higher one month later, with an average gain of 6% [2]. Group 2 - Options for Alibaba stock are currently affordably priced, as indicated by the Schaeffer's Volatility Index (SVI) at 46%, which is in the low 22nd percentile of annual readings, suggesting low volatility expectations among traders [4].