Alibaba Group Holding Limited (NYSE:BABA) beats earnings and revenue expectations in the face of macro concerns

Alibaba Group Holding Limited (NYSE:BABA) beats earnings and revenue expectations in the face of macro concerns

Alibaba Group Holding Limited (NYSE:BABA) beats earnings and revenue expectations in the face of macro concerns

Alibaba Group Holdings Ltd. is managing to invest more efficiently as it tries to expand its business, a trend that helped send shares of the e-commerce giant higher in Thursday’s session. 

The company on Thursday reported better-than-expected earnings and revenue numbers, which analysts saw as an example of the company’s resilience in the face of macroeconomic challenges that have pressured stocks with heavy China exposure. But the big surprise, according to Jefferies analyst Thomas Chong, were the greater efficiencies in Alibaba’s BABA, +3.03%  investment spending.

“We estimate improving loss margin on year-over-year basis from key investment areas under core e-commerce in subsequent quarters,” he wrote in a note to clients. Chong rates the stock a buy and upped his price target to $225 from $216.

Alibaba Chief Financial Officer Maggie Wu said that the company was taking a “disciplined approach” to managing its core-commerce business in general, including when it comes to marketing and head count.

Shares of Alibaba have risen 22% so far this year, while the S&P 500 SPX, +0.25% has climbed 13.6%.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 176.40.

The projected lower bound is: 158.15.

The projected closing price is: 167.28.

Candlesticks

A black body occurred (because prices closed lower 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 21 white candles and 29 black candles for a net of 8 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 8 rising windows in the last 50 candles–this makes the current rising window even more 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 68.1318. 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 50.94. 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 buy 7 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 40. This is not a topping or bottoming area. The last signal was a buy 5 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 0 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed up 4.910 at 166.970. Volume was 39% above average (neutral) and Bollinger Bands were 39% wider than normal.

Open     High      Low     Close     Volume___
170.000 170.890 164.360 166.970 5,304,983

Technical Outlook

Moving Averages: 10-period     50-period     200-period
Close: 160.50 167.30 165.32
Volatility: 48 35 41
Volume: 3,565,444 3,721,762 3,766,039

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
ALIBABA GRP ADR is currently 1.0% 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 10 periods.

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