+5.5% for Alibaba — new Hong Kong headquarters fuels bullish momentum

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Alibaba surges 5.53% today to $162.20

Highlights

Alibaba Group Holding Ltd (9988) rose 5.53% to $162.20, trading below its MA-20 at $167.89 but above both MA-50 at $144.68 and MA-200 at $121.07.
Alibaba and Ant Group purchased several floors at a Causeway Bay office building for HK$7.2 billion ($925 million), marking Hong Kong's largest office deal since 2021 and establishing a new headquarters.
With immediate resistance at $164.05 and support at $144.68, technical signals remain mixed and a pullback or consolidation beneath $164.05 is most likely in the near term.

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Alibaba announced the purchase of several floors in a prime Causeway Bay office building for HK$7.2 billion ($925 million) with Ant Group, marking the largest Hong Kong office property deal since 2021 and establishing their new Hong Kong headquarters. This strategic move occurred alongside a rebound in local technology names, helped by improved China-US trade sentiment and strong mainland GDP data. Secondary support came as investor confidence in tech broadly improved during the period.

Mixed momentum as technicals flag resistance and reversal risk

Immediate resistance for 9988 is at the Ichimoku Kijun level of $164.05, with dynamic support around the MA-50 at $144.68. The short-term trend is under selling pressure, as the price sits below the MA-20, while medium- and long-term momentum remain positive. Daily momentum indicators provide mixed signals: the MACD is strongly bullish, but the high ADX above 40 suggests trend weakness and risk of reversal. RSI at 36.56, plus oversold readings from Stoch RSI and CCI, flag a potential for stabilization, though the BBP still reflects seller dominance and the Awesome Oscillator is neutral.

Limited upside expected as resistance caps near-term gains

In the next five trading days, 9988 is expected to trade between $168.20 and $174.80. The probability of further gains is low — less than 20% — while a pullback or consolidation below resistance remains most likely. If price breaks above $164.05, it may retest the upper weekly range, but a move below $160.00 could trigger a decline towards medium-term support near $144.68.

Viktoras Karapetjanc, senior analyst at Traders Union, sees Alibaba’s strategic expansion in Hong Kong as a key signal of confidence from China’s technology sector, supported by improved China-US trade sentiment and robust economic data. He believes this reinforces the company’s positive medium- and long-term outlook, even as near-term price action faces resistance at $164.05 and short-term selling pressure persists. Given the current sentiment and macro backdrop, Karapetjanc expects any consolidation to be constructive, with the risk of deeper pullbacks limited while fundamentals remain solid. "If $164.05 can be reclaimed, I see potential for Alibaba to resume its move higher — the momentum is there, but structure must catch up first."

Source of Data: 9988 Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.