ALIBABA GROUP HOLDING - Alibaba’s share profits wiped in the first quarter - 05/12/2023 (GMT)

Alibaba Group Holding Limited shares (symbol ‘BABA’) didn’t perform really well in the first quarter of the year and are currently in loss of around 6% compared to the first trading day of January. The company is expected to report its earnings for the fiscal quarter ending March 2023 on Thursday 18th of May, before market open. The consensus EPS is $0,92 compared to the result for the same quarter last year of $1,45.
 
‘The Chinese e-commerce giant is looking healthy with a current ratio of over 150% meaning the company is more than able to cover its short term liabilities with assets currently in possession while the total assets outweigh the total liabilities by more than 2 times. The total revenue for the trailing twelve months are higher than previous years indicating the company’s economic activities are growing making its shares an attractive addition to investors portfolios. ’ said Antreas Themistokleous, an analyst at Exness.
 
From the technical analysis perspective the share is approaching the end of the current triangle formation that is trading within its boundaries for the last 5 months. Even though the overall trend of recent months is bearish there is some potential for a correction to the upside in the short term given that the price manages to break above the current level of the 38.2% of the weekly Fibonacci retracement level. 

If this is the case in the coming sessions then the first point of support could be found around the $90 price area which consists of the psychological resistance of the round number and is also the dynamic area of resistance between the 50% of the Fibonacci retracement and the 50 day simple moving average.