Alibaba stock under pressure after report that Beijing seeks to break up Alipay

Alibaba (BABA.US) shares fell sharply during today's session after Financial Times reported that the Chinese authorities are looking to break up its Alipay associate to reduce its market power and create a separate app for its loans business. Alipay is a highly popular digital payments company owned by Jack Ma’s Ant Group. Alibaba has a one-third stake in Ant Group. Investors are also concerned that Chinese officials are stepping up its ongoing crackdown on big technology companies after regulators have ordered internet companies - including Alibaba and Tencent - to stop blocking links to its competitors' websites on their own websites. 

Alibaba (BABA.US) stock broke below the local support at $166.80 which coincides with the upward trendline and 50 SMA (green line) last week. Stock launched today's session lower, however buyers managed to regain control and a retest of the aforementioned $166.80 level may occur today. In case of a break higher, an upward move towards local resistance at $177.77 could be launched. However if current sentiment prevails, then support at $153.00 may be at risk. Source: xStation5