DeepSeek Joins AI Fundraising Race in China

Although BABA shares rose 2.45% in the last close, the RSI remains neutral at 46.7 and the MACD continues below the signal line. The price is trading below both the 20-day and 50-day moving averages, indicating weak short-term momentum. While DeepSeek's entry into the AI fundraising race is positive news for the sector, it may not serve as a direct catalyst for BABA. With technical indicators offering no clear direction, a sideways trend is expected in the near term.

The news that DeepSeek has joined the AI fundraising race could increase interest in the sector. Technically, the stock rose 4.3% in the last close, with the RSI at 50.9 in neutral territory. Although the MACD is below the signal line, it remains in positive territory, indicating potential for a short-term recovery. However, since the price is below the 20-day SMA, caution is warranted regarding the sustainability of the uptrend.

The short-term technical outlook for the stock is weak. Although the RSI at 38 is approaching oversold territory, it has not yet signaled a recovery. The MACD line is below the signal line and in negative territory, indicating downward momentum. The price is trading below both the 20-day and 50-day moving averages. While the news highlights the AI investment race in China, this could mean increased competition and spending pressure for major tech companies like Alibaba. The likelihood of continued selling pressure in the short term is high.