Alibaba Group Holding Ltd (NYSE:BABA) HEFFX Highlights

Alibaba Group Holding Ltd (NYSE:BABA) HEFFX Highlights

Alibaba Group Holding Ltd (NYSE:BABA) HEFFX Highlights

  • Alibaba Group (BABA) is eyeing the online grocery market in India, which is set to explode in the coming years, reportedly holding talks to acquire a large minority stake in BigBasket, the largest online grocer in the country.
  • Alibaba has opened three new Hema supermarkets where customers can shop both online or in store
  • Those stores are part of the company’s “new retail” strategy
  • The Hema mobile app uses big data analytics to offer customized recommendations for consumers
  • Citing a person familiar with the developments, The Economic Times reported that China’s leading ecommerce player is joining Paytm Mall, the Indian shopping app, to make a $200 million investment in the food focused etailer​, giving it a valuation of close to $900 million.
  • BigBasket operates in roughly 25 cities in India and was the subject of a Bloomberg report last month that Amazon.com Inc. (AMZN) was in talks to acquire the company.
  • The valuation after the $200 million investment would be in line with what the company was looking for and is double its value when it raised funding in March 2016, noted the Economic Times.
  • The two companies have already started due diligence on BigBasket, reported The Economic Times. (See also: Alibaba Continues Investment Spree With $1.25 Billion Investment in Food Delivery Platform Ele.me.)

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.

The projected upper bound is: 163.22.

The projected lower bound is: 145.69.

The projected closing price is: 154.46.

ALIBABA GRP ADR closed up 0.630 at 153.780. Volume was 100% below average (consolidating) and Bollinger Bands were 40% wider than normal.

Open           High           Low            Close           Volume
153.780      153.780      153.780      153.780      6,376

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

Moving Averages: 10-period        50-period       200-period
Close:                       149.43             135.24              109.86
Volatility:                16                     41                      30
Volume:                  11,758,443      18,413,928      12,698,667

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 40.0% 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 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 85 periods. Our momentum oscillator is currently indicating that BABA.K is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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 70.5419. This is not an overbought or oversold reading. The last signal was a sell 1 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 73.86. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 14 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 99. 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 5 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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