Alibaba's stock has a rich history of ups and downs ever since its 'biggest-ever' IPO in 2014.
Starting at $92.70 on its first trading day on the NYSE and going up to its all-time highest value of $120 in November 2014, Alibaba's stock (NYSE: Alibaba Group Holding [BABA]) fell to its lowest value of $58 last year's September. At the moment of writing this article, BABA trades at $99.30.
Despite this promising value, some experts believe that BABA's current high is nothing else but an "overbought condition" that signalizes a forthcoming crash.
They say that the market is whispering to those who is listening. The Street's Ken Goldberg says that at this point in time, it would be wise to hold back all buying activities in BABA's $90s range and go into selling mode in order to exit long exposure and place protective sell stops.
The decline from BABA's highest value ($120) to its lowest ($58) is whopping 62 points. Taking this into consideration for his prediction model, Goldberg talks about the maximum predicted BABA's decline going as low as reaching $30s.
The expert believes that BABA stock has reached its extreme value at the moment and is now at the inflection point, shortly followed by a prolonged decline in the stock's value. Goldberg's overall prediction, based on the DSE algorithms, lies in the area of $60s with a possible decline potential later on.