Shares of Alibaba Group Holdings Ltd., one of the largest companies in the field of e-commerce, are trading at 78.00.

On the daily chart, the price is moving within the corrective trend, and after reaching the full Fibonacci correction of 61.8% at 88.40 began to reverse downwards.

On the four-hour chart, the probability of further decline has increased against the price consolidation below the core Fibonacci correction of 38.2% at 80.10, and consolidation below the initial Fibonacci correction of 23.6% at 74.90 will allow the asset to reach the support level of the recent ascending channel of 70.00.

Technical indicators strengthen the sell signal: fast EMA on the Alligator indicator are below the signal line, expanding the range of fluctuations, and the AO histogram forms downward bars, decreasing in the sell zone.

Trading tips

Short positions may be opened after the price decreases and consolidates below 74.90, with the target at 70.00. Stop loss – 77.00. Implementation period: 7 days or more.

Long positions may be opened after the price grows and consolidates above 80.10, with the target at 84.32. Stop loss – 78.00.