Alibaba Group Holding Limited (NYSE:BABA) Alipay Partners with Chinese Government to Assign Coronavirus Status to Citizens

Alibaba Group Holding Limited (NYSE:BABA) Alipay Partners with Chinese Government to Assign Coronavirus Status to Citizens

Alibaba Group Holding Limited (NYSE:BABA) Alipay Partners with Chinese Government to Assign Coronavirus Status to Citizens

In an attempt to reign in the ongoing coronavirus outbreak, the Chinese government has partnered with Alibaba’s (NYSE: BABA) sister company, Ant Financial, to create a color-coded health rating system that tracks millions of Chinese citizens. The system automatically assigns each person a green, yellow, or red rating indicating health status.

About the Coronavirus app

Citizens sign up through Ant’s popular Alipay payments app on their mobile phones. China’s official news media calls the system the Alipay Health Code. It allows anyone with a green status to be in public, using a QR code on the Alipay app to check in at public locations such as subways and office buildings. Those with a yellow status may be asked to stay home for seven days, and anyone with a red status is required to undergo a two-week quarantine.

Currently, the system is used in 200 cities throughout China, and is being rolled out nationwide. The system leverages big data to automatically assign a rating. An official Alipay Health Code website states the rating is based on factors such as travel to a virus hot zone. While Ant and the Chinese government declined to provide details on how Alipay Health Code works, the New York Times investigated the app and discovered it shares data about individuals with law enforcement.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 222.52.

The projected lower bound is: 199.56.

The projected closing price is: 211.04.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

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 55.8935. This is not an overbought or oversold reading. The last signal was a buy 3 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 46.84. 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 31 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 -58. This is not a topping or bottoming area. The last signal was a buy 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 sell 6 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed up 2.980 at 210.980. Volume was 29% above average (neutral) and Bollinger Bands were 5% wider than normal.

Open     High      Low     Close     Volume___
208.560 211.110 203.780 210.980 4,937,633
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 211.78 216.31 184.42
Volatility: 32 34 36
Volume: 4,626,378 3,544,824 3,603,356

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 14.4% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BABA.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on BABA.N and have had this outlook for the last 24 periods.

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