Alibaba Stock Drops 10% After $10.2 Billion AI Funding Bet
Alibaba stock closed at $118.47 on Monday, down roughly 10% after the company confirmed a $10.2 billion equity placement to fund its AI build-out. Price now trades below all three key moving averages on the daily chart. The broader trend structure has turned unmistakably heavy.
Key takeaways
- Alibaba stock fell roughly 10% after a $10.2 billion equity placement for AI investment
- Price trades below the EMA20 ($123.16), EMA50 ($120.73), and EMA200 ($129.67)
- Insiders, including the CEO, purchased more than 1 million shares following the selloff
- Daily support sits at $116.42, with resistance at $120.49
- RSI14 at 44.99 remains neutral, meaning the selloff has not yet reached exhaustion
Alibaba Stock Daily Chart: A Trend Under Pressure
The daily chart shows Alibaba stock has lost its bullish footing decisively. Price trades below all three key moving averages in a textbook bearish alignment.
In terms of momentum, the MACD line sits at 2.0 versus a signal line of 3.1. This produces a negative histogram of -1.1. Momentum is clearly fading. The MACD line remains in modestly positive territory, but recent bounce attempts have lacked real conviction. Meanwhile, RSI14 at 44.99 is not yet oversold. It sits in neutral ground, which suggests sellers have pushed price lower without exhausting the move.
โฆ Continue reading the full article at the original source below.
