To The Moon

Chinese stocks like Alibaba, Pinduoduo & JD have had some pull back since making a nice move from their November 2022 bottoms. In fact, when Alibaba released their December quarter results, their total revenue still grew 2% for the December quarter, while China commerce (both retail and wholesale) accounted for 69% of their total revenue. Total China commerce for three months ended December 31 declined 1% compared to the year before, while total international commerce grew 18%. It is also mentionable that their cloud segment grew 3%, while their logistics segment Cainiao grew 27%.

Alibaba financial highlights 

However, despite some good results, the stock still trended downwards, mostly due to profittaking and China-US geopolitical issues. Eventually when the noise is filtered out, the recovery play will remain strong. Let's take a look at some support levels to add to longs.

BABA

BABA stock roughly has retraced 50% of its November to mid January peak, current supportlevel of $89 looks strong, and coincides with 200 MA. Otherwise look for support at $82, roughly 61.8% fib retracement.

PDD

Pinduoduo has made a mega move, gaining almost 2.7x from its $38.80 low in November. As previously discussed, the 50 MA has now been breached. A fib retrace of 38.2% mostly coincides with the 100 MA, and $80 support looks likely. If that fails, look for next support at $72. 

JD

JD has given up a lot of its Nov-Jan gains, and has breached the 61.8% fib retracement at roughly $46. Look for support at $40.50, representing 78.6% fib retracement. 

$Alibaba(BABA)$ 

$Pinduoduo Inc.(PDD)$ 

$JD.com(JD)$ 

@TigerStars