As a long holder of BABA, Alibaba's recent breakout above its October high is a significant technical and psychological milestone, especially as it approaches the $120 resistance level. The continuous inflow of funds from mainland China investors via the Stock Connect programs highlights strong domestic confidence in the company's long-term growth prospects, despite recent regulatory challenges.

From a valuation perspective, Alibaba remains attractively priced compared to its global peers, trading at a forward P/E ratio that is significantly lower than many of its counterparts. This suggests that there is still room for upside, particularly if the company can demonstrate sustained revenue growth and margin improvement in its upcoming earnings reports.

However, investors should remain cautious of macroeconomic headwinds, including potential regulatory changes and global market volatility. A balanced approach—taking partial profits while maintaining a core position—could be prudent for those who have seen substantial gains. For new investors, any pullbacks towards key support levels (e.g., $105-$110) might present very attractive entry points.

In summary, while the bullish momentum is strong, a disciplined approach to risk management is essential in navigating this volatile yet promising stock.