Alibaba’s US-listed shares rose 8% on Thursday after the Chinese tech giant reported quarterly results that exceeded Wall Street expectations. The company attributed its growth to AI-driven strategies, which led to triple-digit growth in AI-related product revenue for the sixth consecutive quarter.
Since the start of the year, Alibaba shares have surged 60%. This recent rally was boosted by reports that the company will partner with Apple to provide AI features for iPhones in China. Additionally, co-founder Jack Ma’s meeting with Chinese leader Xi Jinping earlier this week has improved sentiment towards the stock.
On Thursday, Alibaba shares closed at $136, their highest level since November 2021. The rally has been driven by above-average trading volume, indicating buying conviction from institutional investors and hedge funds. However, the relative strength index (RSI) indicates overbought conditions, which could lead to short-term profit-taking.
Investors should monitor key support levels at $103 and $78, as well as resistance levels near $178 and $231. A close below $103 could see shares revisit $78, while buying above $178 could fuel a rally to around $231.
Source: https://www.investopedia.com/watch-these-alibaba-price-levels-as-stock-jumps-to-3-year-high-after-earnings-11683879