BABA (Alibaba Group Holding Limited) has been a favorite name in the fine China tech space for quite some time now. The recent September squeeze has pushed the stock to reach levels of overbought RSI (Relative Strength Index) not seen in “modern times”. As a result, we may be seeing a resistance level around 200, which could potentially lead to a pause in the stock’s upward trajectory. However, it’s important to note that this is only a short-term thing and BABA’s long-term growth prospects remain intact.

Firstly, let’s take a look at the chart provided above. The RSI has reached levels of 70 and above, which is considered overbought territory. This indicates that the stock has been driven upwards by excessive buying pressure, leading to a potential squeeze. As the RSI approaches these overbought levels, it’s natural for the stock to face some resistance and potentially pause its upward movement.

However, it’s important to keep in mind that this is only a short-term thing. BABA has consistently shown strong growth prospects in recent years, driven by its dominant position in the Chinese e-commerce market and its expanding presence in other areas such as cloud computing, digital payments, and more. The company’s commitment to innovation and its large user base provide a solid foundation for long-term growth.

While BABA may face some resistance at the 200 level, it’s important to keep in mind that this is only a short-term pause. The stock’s long-term growth prospects remain intact, and investors should continue to hold onto their positions with confidence. As always, it’s important to monitor market conditions and adjust your portfolio accordingly, but for now, BABA remains a solid choice for those looking to capitalize on the growing Chinese tech sector.