alibaba: Alibaba stock is overbought as spinoff prompts $47 billion rally
It took just 10 days for a rally in Alibaba Group Holding Ltd. to flip the shares from being ice cold to red hot.The Chinese internet conglomorate’s plan to slash its empire into six units has so far added $47 billion of market value, causing a key technical indicator to flash a sell signal — little more than a week after it showed the stock was oversold.Alibaba’s 14-day relative strength index has risen above 70, typically a signal that a rally has gone too far. The US shares have jumped more than 20% so far this week,…