Alibaba Group $BABA Dark Pool Selling On Worsening China Relations Over Ukraine

  • Post category:Dark Pool Stocks
  • Reading time:4 mins read
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Institutional investors and short-sellers are targeting Alibaba $BABA stock on worsening relations with China over Ukraine and Taiwan.

Dark Pool Trading In Alibaba Stock

The dark pool selling in Alibaba $BABA stock has increased over the last month after China refused to stop helping Russia in Ukraine.

Alibaba stock chart on October 24, 2022, with dark pool trades shown in orange bars, with a table to the right with the text TIME SYMBOL MESSAGE PRICE 10/10/22 BABA 860,912 DARK AVGPRC $68.0M 5.1% AvgVol $79.24 10/06/22 BABA 220,000 DARK BLOCK $18.0M 1.21% AvgVol $85.30 10/06/22 BABA 275,000 BLOCK $23.0M 1.51 % AvgVol $84.60 10/06/22 BABA 300,000 BLOCK $25.0M 1.65% AvgVol $84.45 10/05/22 BABA 109,049 DARK BLOCK $9.2M 0.6% AvgVol $84.39 10/04/22 BABA 130,119 DARK BLOCK $10.0M 0.71% AvgVol $84.11 10/04/22 BABA 373,000 DARK AVGPRC $31.0M 2.05% AvgVol $84.11 10/03/22 BABA 159,999 DARK BLOCK $12.0M 0.88% AvgVol $79.99 09/30/22 BABA 200,000 DARK BLOCK $16.0M 1.11% AvgVol $80.75

A narrative emerges that the largest institutional investors in Alibaba stock, like Goldman Sachs, are likely reducing long positions as China relations worsen over Ukraine and rumors circulate China will move on reunification of Taiwan.

The pressure is being put on the Chinese to not support Russia and to abandon Taiwan reunification. We are seeing the pressure increased on China via curbs on selling microchips to China, delisting Chinese companies from U.S. stock markets, and charges against Chinese leaders on October 24, 2022.

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Alibaba price target lowered at Barclays

On October 3, 2022, Barclays analyst Jiong Shao lowered the firm’s price target on Alibaba to $135 but kept an Overweight rating on the shares. Shao cites recent Chinese yuan weakness for the target cut. The analyst believes the company’s conversion to dual-primary listing status in Hong Kong is on track to be completed by December 2022, and that there is a possibility for inclusion in the Stock Connect program to be fast tracked. Shao also believes the overhang on shares because of recent forward share sales by Softbank. expects a wave of analyst downgrades to hit once institutional investors are done reducing long positions over the dark pools.

Alibaba Group $BABA Stock Technical Analysis

Alibaba $BABA stock is in a technical strong downtrend. Long-term indicators suggest a continuation of the downtrend. Short-term indicators show the stock approaching oversold territory, so a bounce or trend reversal is possible. However, with U.S. and China relations worsening, unless the Chinese succumb to U.S. pressure, placing bets on the long side is too risky a trade.

Alibaba Group stock chart on October 24, 2022, in a downtrend channel pattern, with a negative MACD, and a negative money flow.
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