QuantSignals V3 BABA — Katy AI Flags Strong Bearish Setup

BABA QuantSignals V3 Weekly 2025-11-25

Ticker: BABA
Current Price: $164.52
Signal Type: Weekly (V3)
Direction: BUY PUTS
Confidence: 58%
Conviction: Medium
Trend / Weekly Momentum: BEARISH (-1.99% 1W)
Volatility: High (Earnings Event)

🎯 Trade Setup

Strike: $165 PUT

Expiry: 2025-11-28 (3 days)

Entry Range: $7.70 – $7.85

Target 1: $11.70

Target 2: $15.60

Stop Loss: $5.85

Position Size: 2–3% (reduced due to high event risk)

🧠 Key Insights

Katy AI projects a drop to ~$154.01 (-6.4%) over the next 3 days

Chart shows bearish continuation, with resistance $168.88 and support $148.64

Volume 2.3× last week suggests institutional distribution

Options flow neutral (PCR 0.90), but high activity at $150 puts indicates downside hedging

Earnings today → high volatility & uncertainty

⚠️ Risk Notes

HIGH RISK WARNING

Earnings catalyst may cause oversized swings — use smaller size

Gamma acceleration may increase moves into Thursday/Friday expiry

📌 Summary

BABA weekly outlook is bearish with moderate confidence. Katy AI direction, technicals, and weekly momentum align, supporting a short-term PUT setup. Use tight risk control due to earnings-day volatility.