Alibaba Group Holding Limited (NYSE:BABA) and Starbucks plan to expand delivery to 2,000 stores in China

Alibaba Group Holding Limited (NYSE:BABA) and Starbucks plan to expand delivery to 2,000 stores in China

Alibaba Group Holding Limited (NYSE:BABA) and Starbucks plan to expand delivery to 2,000 stores in China

Starbucks has officially struck a partnership with Alibaba Group with a multi-pronged plan to boost the beverage company’s digital and physical presence in China.

In the exclusive agreement, the global fast-casual chain will leverage all of Alibaba’s properties, including delivery platform Ele.me and supermarket chain Hema, to expand delivery services throughout China.

Starbucks will also partner with Ele.me, a food delivery platform that Alibaba acquired this year, to open 150 stores in Shanghai and Beijing and then broaden delivery to 2,000 stores in 30 cities “before the end of the calendar year.

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 192.06.

The projected upper bound is: 195.36.

The projected lower bound is: 174.69.

The projected closing price is: 185.02.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.

Separating lines occurred. If the lines occur during an uptrend and the first line is black and the second is white (which is not the case with ALIBABA GRP ADR) then this suggests that the uptrend should continue.

If the separating lines occur during a downtrend (which appears to be the case with ALIBABA GRP ADR) and the first line is white and the second is black (which is the case with ALIBABA GRP ADR) then this suggests that the downtrend should continue.

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 23.7412. This is not an overbought or oversold reading. The last signal was a buy 6 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 42.41. 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 38 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 -97. 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 0 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed down -1.960 at 185.270. Volume was 15% below average (neutral) and Bollinger Bands were 49% narrower than normal.

Open High Low Close Volume___
186.000 189.060 183.960 185.270 3,026,449

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

Moving Averages: 10-period 50-period 200-period
Close: 188.95 195.87 186.71
Volatility: 40 34 38
Volume: 3,115,245 3,609,330 3,904,223

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 0.8% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 27 periods.

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