Alibaba facing pressures

Alibaba, the Chinese multinational giant has seen its value drop recently because of Trade War rhetoric and the resignation of founder Jack Ma.

Alibaba (BABA) is facing a new threat on its home turf due to the astronomical growth of group-buying e-commerce company Pinduoduo (NASDAQ:PDD). PDD’s growth is staggering because it has managed to grow at a rapid pace in a market which looked like a duopoly between Alibaba and JD.com.

As per the chart above, the stock has been trending downwards in a channel with the price very recently crossing over various moving averages.

It might be a bit controversial at the moment but I think the stock is under a lot of pressure and hence my idea is to go short in the area of $175/170.

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