DeepSeek Rally Lifts Chinese Chip Stocks

While the news headline suggests a positive tailwind for Chinese chip stocks, BABA is not a direct chip company, so the impact may be limited. Technical indicators paint a weak picture: RSI at 37.8 is near oversold territory, MACD is below the signal line, and the price is trading below both the SMA20 and SMA50. Although there is a short-term upside catalyst, the current technical structure does not provide sufficient strength for a recovery. Therefore, no clear directional signal has emerged.

Although the stock experienced a 3.68% decline in the last 24 hours and its RSI has approached oversold territory at 34.5, MACD values remain negative and below the signal line. The price is trading below both the 20-day and 50-day moving averages, indicating short-term weakness. While the DeepSeek momentum mentioned in the news headline has positively impacted chip stocks, technical indicators for this particular stock are far from signaling a recovery. The risk of a continued downtrend in the short term is high, but the approach to oversold territory could also trigger a potential rebound buying.

While the headline reflects positive sentiment in Chinese chip stocks, 9988.HK (Alibaba) is not a direct chip company and may be only marginally affected by this tailwind. Technical indicators present a weak outlook: the price is below both the 20-day and 50-day moving averages, the MACD is below the signal line and in negative territory, and the RSI is neutral at 47. The 1% decline in the last close also confirms weak short-term momentum. Therefore, despite the positive news impact, the technical picture offers no clear direction; sideways or limited movement can be expected in the near term.