What’s going on with Alibaba stock today? – Alibaba Gr.Hldgs (NYSE:BABA)

Shares of Alibaba Group Holding Limited American (NASDAQ:BABA) plummet after a report claimed the e-commerce company was working with the Chinese military to target the US.

What you need to know: Alibaba has provided technical support according to Chinese military operations Financial times. The newspaper quotes a national security memo from the White House containing declassified top secret intelligence.

The memo, which the Times could not independently verify, said Alibaba gave the Chinese government and the People’s Liberation Army access to customer data, including IP addresses, WiFi information and payment data, as well as various AI-related services.

Alibaba said the allegations are false and that the information was leaked to defame the company.

BABA analysis: Alibaba has shown impressive performance so far, up 79.9%. This strong performance underlines the stock’s resilience even as it faces short-term volatility. The Relative Strength Index (RSI) currently stands at 42.94, which suggests that the stock is in neutral territory, indicating that it is neither overbought nor oversold at the moment.

Support for Alibaba is calculated at $130.06, which could provide a safety net if stock prices continue to fall. Conversely, resistance is identified at $170.55, which will be a crucial level to watch for a possible recovery. If the stock can regain momentum and break through this resistance, it could signal a return to bullish sentiment.

As the market digests this recent price action, the technical situation suggests traders should be cautious. The proximity to the 50-day moving average could lead to a pivotal moment for Alibaba, where a recovery from this level could provide an opportunity for a rebound, while a break below could signal further weakness.

BABA price promotion: Alibaba shares fell 4.73% to $152.31 at the time of publication on Friday. The stock is trading within a 52-week range of $80.06 to $192.67.

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