The Chinese stock market still does not show any signs of an upcoming recovery. Nevertheless, we do believe that the correction might be over pretty soon.
As for Alibaba stock, it dropped out of the global rising channel it usually moves into and even broke through the median line of the 2nd channel, which is a projection of the main one. We expect the price to come to $130 since it is a global support level and the bottom line of the 2nd channel.
Unfortunately, if a $130 breakout happens, Alibaba will head towards the next support which is only at $86. But we do not believe in this scenario.