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Google Following Stock Markets Up, Alibaba Shares Remain Bearish


The last two years have been the most bullish period in the stock market ever. Stocks have been bullish for a long time, but since the flash crash when the pandemic started in March 2020 we have seen the bullish momentum pick up considerable pace. The enormous amount of funds that have been injected into the global economy by governments and central banks have been the main factor for this bullish run. Google shares are following the market trend higher, while Alibaba shares continue to remain bearish.

Google Daily Chart Analysis – Alphabet the Main Tech Stock in 2021

Alphabet started the year trading at around 1,700 points, while it is closing the year around 3,000 points, which means a 75% increase and the total value is approaching $2 trillion. The uptrend has been quite straightforward, with the price being supported by moving averages during pullbacks lower. The latest pullback which took place earlier this month is also over now and Google is closing 2021 on a bullish foot.

With the closures during the last two years, tech companies have benefited immensely. Consumers have flocked in greater numbers to web and mobile search, YouTube videos etc, and Google’s growing cloud infrastructure unit picked up business from the explosion in remote work. So, Alphabet has been having a great year and it is expected to do well in 2022 as inflation remains at enormous levels, turning investors into stock markets and tech companies in particular.

Alibaba Daily Chart Analysis – MAs Still Keeping Baba Down

The 20 SMA has turned into resistance on the daily chart now

Alibaba has been one of the most prominent companies in recent years and Baba stocks were enjoying a nice rally. But, that only lasted until November last year, coinciding with the presidential elections in the US. The Chinese government extended the crackdown from cryptos to other industries and companies, which has been detrimental for Alibaba stocks for more than a year.

Alibaba seems to be in the focus of the government, for its Alipay service. So, the pressure has been to the downside for Baba stocks and we have been trying to sell the retraces higher. Moving averages have turned into resistance on the daily chart, with the 20 daily SMA (gray) taking up that job recently, showing that the bearish pressure remains strong. We opened a sell forex signal here, so we are hoping that the downtrend resumes again after this consolidating period.





Read More : Google Following Stock Markets Up, Alibaba Shares Remain Bearish

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