Barron's or Not, BABA Remains in the Grasp of a Dominant Downtrend

Apart from the impression one gets from the very negative, Barron's feature article in the latest issue, let's notice that the actual-price reaction has not inflicted significant technical damage to developing Aug-Sept chart pattern in Alibaba Group Holding Limited (BABA).

In other words, while BABA is down 3.3%, the price remains above its prior two significant pullback lows at 60.25 and 58.00.

That said, however, BABA also remains in the grasp of a multi-month downtrend, with the post-Aug 24 pattern within the dominant downtrend taking the form of a coil-- similar to the larger market indices.

A coil that forms near the lows of a downtrend usually represents the digestion period prior to another burst of weakness that retests and likely violates the low (58.00).

At this juncture, only a rally that hurdles and sustains above 66.80 will morph the bearish coil into something a bit more constructive, while a climb above 71.70 is needed to neutralize the BABA downtrend.