Alibaba Group Holding Ltd (NYSE:BABA) HEFFX Highlights

Alibaba Group Holding Ltd (NYSE:BABA) HEFFX Highlights

Alibaba Group Holding Ltd (NYSE:BABA) HEFFX Highlights

  • Tencent launched its WeChat Pay payments service in Europe on Monday.
  • WeChat is a giant social media service with 938 million monthly active users. WeChat Pay has 600 million active users.
  • WeChat will come up against Alipay, the payments service run by Alibaba affiliate Ant Financial, which launched in Europe in 2015.
  • Alibaba unveils staff-less Tao Cafe and smart speaker to revolutionise offline retail
  • Alibaba recently announced that it is launching a smart home speaker, termed Tmall Genie, in August this year. The smart speaker market has been heating up of late, as Google and Apple are looking to compete with Amazon’s Echo in the segment.
  • While these tech giants are primarily selling their smart home devices in the U.S. and Europe, Chinese search engine giant Baidu is also looking to foray into the segment of family robots and personal voice assistants.
  • Baidu launched a voice controlled family robot called “Little Fish” in May this year, with which Alibaba’s device could potentially compete. While Little Fish is a robot and priced at $478, as opposed to Alibaba’s low cost speaker which will cost around $73 in the first month of release, Baidu is also likely to launch a personal voice assistant competing directly with Alibaba.

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 stalling.

Intermediate term: Prices are trending.

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

The projected upper bound is: 152.46.

The projected lower bound is: 135.01.

The projected closing price is: 143.73.

ALIBABA GRP ADR closed up 0.750 at 143.180. Volume was 100% below average (consolidating) and Bollinger Bands were 5% narrower than normal.

Open          High            Low            Close          Volume
143.180      143.180      143.180      143.180      2,154

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

Moving Averages: 10-period         50-period       200-period
Close:                       142.36              129.78             108.10
Volatility:                27                      42                    31
Volume:                   13,332,383     17,637,516      12,981,527

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 32.5% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of BABA.K at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BABA.K and have had this outlook for the last 77 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 61.1140. This is not an overbought or oversold reading. The last signal was a sell 9 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 62.91. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 6 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 74. This is not a topping or bottoming area. The last signal was a sell 17 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 sell 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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