Alibaba Group Holding Ltd (NYSE:BABA) Beating Amazon

Alibaba Group Holding Ltd (NYSE:BABA) Beating Amazon

Alibaba Group Holding Ltd (NYSE:BABA) Beating Amazon

  • The business world may be enthralled with Amazon’s moves to become a major supermarket player, but Chinese e-commerce giant Alibaba says it is already strides ahead and is opening up new ways for Australia food producers to access its more than half-a-billion customers.
  • Alibaba has been an important avenue for Australia baby formula and vitamin producers to access the Chinese market, through its Alibaba.com wholesale website and its direct-to-consumer site Tmall, but Maggie Zhou, Alibaba’s Australia and New Zealand managing director, said fresh produce now presented the greatest opportunity for growth.
  • Alibaba already sells some fresh products online and is pushing further into the category with its own supermarkets in China, opening 13 since 2015.

Alibaba Group Holding Limited is a holding company. Through its subsidiaries, the Company is engaged in online and mobile commerce through offering of products, services and technology that enable merchants, brands and other businesses to transform the way they market, sell and operate in the People’s Republic of China (China) and internationally. Its businesses consist of core commerce, cloud computing, mobile media and entertainment, and other innovation initiatives. Through investee affiliates, it also participates in the logistics and local services sectors. Retail commerce in China operated by the Company includes the China online commerce destination (Taobao Marketplace); the China third-party platform for brands and retailers (Tmall), and the sales and marketing platform for flash sales (Juhuasuan). Wholesale commerce in China operated by the Company includes the China domestic wholesale marketplace (1688.com) and the wholesale marketplace for global trade (Alibaba.com).

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 149.96.

The projected upper bound is: 179.76.

The projected lower bound is: 165.19.

The projected closing price is: 172.47.

ALIBABA GRP ADR closed down -3.260 at 171.740. Volume was 39% above average (neutral) and Bollinger Bands were 105% wider than normal.

Open            High          Low           Close        Volume
174.800      174.940     171.110      171.740      24,184,674

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period       50-period      200-period
Close:      166.95      152.22      117.16
Volatility:     27     30     31
Volume:     25,664,188     18,082,474      13,605,391

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

ALIBABA GRP ADR is currently 46.6% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into BABA.K (mildly bullish). Our trend forecasting oscillators are currently bullish on BABA.K and have had this outlook for the last 111 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 78.4232. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 69.25. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 80. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 6 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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