US Accuses Alibaba, Baidu, and BYD of Supporting Chinese Military

The news that the US has accused Alibaba of supporting the Chinese military increases geopolitical risks, which could put pressure on the stock. Technical indicators already paint a weak picture: although the RSI is at 26.5, indicating oversold conditions, the MACD is below the signal line and in negative territory. The price is trading below the 20- and 50-day moving averages, and has fallen 5.9% in the last 24 hours. In the short term, selling pressure is likely to continue, but a sharp rebound should not be expected due to the oversold conditions.

The news that the US has accused Baidu of supporting the Chinese military increases geopolitical risks, which could put pressure on the stock. Technical indicators already paint a weak picture: the RSI is in oversold territory at 25, the MACD is below its signal line, and the price is below both the 20-day and 50-day moving averages. The 11% drop in the last 24 hours indicates continued selling pressure. With negative news flow and technical weakness combined in the short term, the downtrend is expected to persist.

The news headline contains a serious allegation that BYD supports the Chinese military. Such geopolitical risks could create negative sentiment in the short term, especially for companies with commercial ties to the US. Technical indicators already show a weak outlook: RSI at 47, below neutral territory; price trading below the 20-day moving average (87.49); and MACD below the signal line. This combination suggests selling pressure may increase. However, since it is unclear whether the allegations will lead to concrete sanctions, the downside may be limited.