Alibaba Group Holding Limited (NYSE:BABA) allowing businesses from a select few other countries to sell goods on its platform

Alibaba Group Holding Limited (NYSE:BABA) allowing businesses from a select few other countries to sell goods on its platform

Alibaba Group Holding Limited (NYSE:BABA) allowing businesses from a select few other countries to sell goods on its platform

China’s e-commerce giant Alibaba is now allowing businesses from a select few other countries to sell goods on its platform. AliExpress, which enabled small and medium-sized companies in China to sell goods to over 150 countries, has opened up to businesses in Italy, Russia, Spain and Turkey reports The Financial Times. The company hopes to expand AliExpress to retailers in other countries.

AliExpress, which solely consists of third-party retailers, is notable for selling items at “too good to be true” prices, such as 49-cent iPhone cases or counterfeit luxury handbags for a few US dollars. Last year, AliExpress registered a 94 percent spike in sales. “This year is the first year for our ‘local to global’ strategy,” said Trudy Dai, president of AliExpress to FT. “This strategy is intimately connected to Alibaba’s broader globalization strategy.”

Alibaba’s global expansion is a direct aim at Amazon, which is currently the world’s largest online retailer. But Alibaba’s presence in China is unrivaled, and the country is expected to surpass the US this year as the biggest retail market in the world. Meanwhile, Amazon has struggled to make much of an impact in China, where shoppers prefer Alibaba and JD.com. Last month, Amazon announced it was shuttering its Chinese domestic e-commerce business.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 187.62.

The projected lower bound is: 170.24.

The projected closing price is: 178.93.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

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 15.6518. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 18 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 41.46. 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 45 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 -204.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 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 2 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed down -0.550 at 179.040. Volume was 40% above average (neutral) and Bollinger Bands were 33% narrower than normal.

Open High Low Close Volume___
175.250 180.680 173.070 179.040 4,214,663

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 186.28 183.39 165.38
Volatility: 37 30 43
Volume: 3,278,251 2,786,566 4,001,843

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 8.3% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 0 periods.

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