Should Alibaba (BABA) Be On Your Watchlist?

March 16, 2025

What is the reason for a stock to be on your watchlist? Is it just to watch? Or is because you think that it will up in price? Or is it because it is already on its path of rising prices? While you monitor and/or trade the stocks on your watchlist, what do you do with some new ones that seem worth looking at? Do you look at them and discard them? Or do you keep them on your watchlist? How many stocks are too many to place on your watchlist?

What You See Is Not What Others See

Alibaba (BABA) came into the market in 2014. Since then, it has been a tale of three phases. An initial uptrend took the stock from around a $60 price to around $300. To be immediately followed by a severe bear trend phase that gave up all of the gains and coincidentally, or maybe it was not so coincidental, when it fell from around $300 to around $60. And then came a long three year bottoming out phase as the stock hovered between $60 and $115 for the past three years.

Phase 1 – the uptrend

Incredibly, the peak looked like the peak of a mountain and the downtrend began without warning and was quick and severe, almost a dream for the right short seller.

Phase 2 – the downtrend

Phase 3 – the bottoming process

There are folks who look to find the bottom of a move. That is an endeavor, like all endeavors in the stock market, fraught with risks and pain. The process of finding and fixing a price bottom on Alibaba took three years.

And a closer look at this phase shows interesting action.

Phase 4 – Is this a new uptrend?

And now are we in phase 4? Is a new uptrend possible? Let us see if we zoom in on the last twelve months if we see anything.

If an uptrend is a set of higher highs and higher lows, has Alibaba met this requirement? Has it proved that an uptrend has begun?