Alibaba Group Holding Limited (NYSE:BABA) Analysts Cut Price Target
Several Wall Street analysts cut their price targets on Alibaba (BABA) stock Wednesday, based on concerns about e-commerce sales trending below expectations and the impact of aggressive investments on profit margins.
Alibaba stock closed at 138.29, down 5.9%, on the stock market today. Shares now trade near a 15-month low. Alibaba stock has dropped 34% since hitting a record high of 211.70 on June 5 amid an escalating trade war between the U.S. and China. There also are signs of slowing economic growth in its home market.
Alibaba reported fiscal first-quarter earnings and revenue in August that were just above analyst estimates, though profit growth slowed from a year earlier amid higher investments.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 169.54.
The projected upper bound is: 147.31.
The projected lower bound is: 127.31.
The projected closing price is: 137.31.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 17 white candles and 33 black candles for a net of 16 black candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 9 falling windows in the last 50 candles–this makes the current falling window even more bearish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 6.4362. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 20 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 23.59. This is where it usually bottoms. 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 buy 21 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 -198.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 20 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 3 period(s) ago.
Rex Takasugi – TD Profile
ALIBABA GRP ADR closed down -8.650 at 138.290. Volume was 167% above average (trending) and Bollinger Bands were 28% wider than normal.
Open High Low Close Volume___
142.370 144.000 137.920 138.290 11,611,831
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 156.28 167.98 183.77
Volatility: 39 39 40
Volume: 4,492,142 4,998,510 4,122,670
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.
ALIBABA GRP ADR gapped down today (bearish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
ALIBABA GRP ADR is currently 24.7% below 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 6 periods. Our momentum oscillator is currently indicating that BABA.N is currently in an oversold condition.