Alibaba (BABA): Stimulus Hopes Fade, Correction Ahead?

12 Des 2024

We secured solid profits on BABA, with a significant rejection at the breakout gap. The stock is now under pressure, facing potential headwinds due to Donald Trump’s presidency and his proposed tariffs. While Chinese stocks surged recently, driven by Beijing’s increased rhetoric around stimulus ahead of a key policymakers’ meeting, the lack of any immediate announcements until March’s National People’s Congress may dampen sentiment.

Despite BABA dropping pre-market and likely throughout the week, our strategy remains unchanged. With partial profits taken and the stop-loss at break-even, we are not exposed to unnecessary risk.

As long as BABA continues trading above $82, the position remains stable unless major news changes the outlook.