Alibaba is approaching a key resistance zone. Retail sentiment is bullish but caution is rising at high levels, with 137.900 yuan becoming the short-term focus.

Today, a fellow community member left a message asking about Alibaba, so I'll share my thoughts again.
Alibaba has continued to rise after rebounding from a low of 117.500 yuan, closing at 137.000 yuan on April 20th and reclaiming several short-term moving averages, indicating a strong short-term trend. However, the stock price is now approaching the resistance zone of 136.797 to 137.900 yuan. Coupled with the Relative Strength Index (RSI) rising to 74.658, this reflects that while short-term momentum is strong, it is also beginning to approach overbought territory. Therefore, chasing the rally at this stage requires attention to consolidation pressure at higher levels.
Overall market sentiment leans optimistic, but divergence at higher levels has also increased noticeably. Some investors remain quite confident about the future, believing the stock price has a chance to stabilize above 140 yuan, and even look further to 150 yuan, 160 yuan, and higher levels. Others believe capital is still in the market and the uptrend is not over yet. Another group of investors is beginning to worry about a pullback from highs, thinking the short-term gains have accumulated significantly. If the broader market is dragged down by external news again, Alibaba may also pull back first, with some even choosing to wait for levels around 130 yuan or lower before considering a position. Overall, although market sentiment is bullish, it has shifted from simply expecting a rise to focusing on whether the high levels can be sustained.
The most common questions in the market mainly focus on a few directions. First, whether this round of rebound can truly break through 140 yuan, opening up higher upside potential. Second, whether the current price is still suitable for chasing, or if one should wait for a pullback to around 130 yuan before deploying. Third, the market is also concerned about fundamentals and news flow, including capital investment, cash flow, new business developments, and thematic news, and whether they will continue to support the stock price. These questions reflect that at this stage, what investors are most concerned about is not whether Alibaba has rebounded, but whether this rebound can further upgrade into a more complete continuation of strength.
Technically, 132.460 yuan remains the short-term watershed. As long as the stock price can hold above it and further break through 137.900 yuan, the short-term uptrend has a chance to continue. Conversely, if it falls below 132.460 yuan, attention should turn to testing the support at 127.890 yuan. The RSI reading of 74.658 shows that short-term momentum has clearly strengthened, but it is also approaching overbought territory. The middle band of the Bollinger Bands is at 125.710 yuan. The current price is significantly above the middle band and close to the upper band at 136.797 yuan, indicating the uptrend persists, but the room for chasing is beginning to narrow. The risk-reward ratio at this stage is neutral to low. For positioning, it is more suitable to wait for a confirmed breakout or to observe buying support after a pullback.