Alibaba Facing Bearish Death Cross After Earnings Drop: Chart

Alibaba Group Holding Ltd.’s 3.8 percent drop on Thursday, one of its dozen or so biggest since going public in 2014, left the stock perilously close to its first death cross, a bearish technical signal when the 50-day moving average crosses below the 200-day line.

Five weeks after its first golden cross -- the opposite signal -- the shares are displaying other ominous signs: After repeatedly failing to break above the 50 percent Fibonacci level this year, it closed yesterday after breaching the key 61.8 percent line. If it falls more from the $66.92 close in the coming days, it may find support at $65.34, its most recent low.