Alibaba Group Holding Limited (NYSE:BABA) Blocked From Hong Kong Stock Link to China

Alibaba Group Holding Limited (NYSE:BABA) Blocked From Hong Kong Stock Link to China

Alibaba Group Holding Limited (NYSE:BABA) Blocked From Hong Kong Stock Link to China

Investors betting on Alibaba Group Holding Ltd.’s inclusion in a program allowing mainland Chinese investors to buy its shares in Hong Kong could be in for a disappointment.

The Hong Kong Stock Exchanges & Clearing Ltd. has proposed changes to the China Securities Regulatory Commission, which hasn’t yet made a decision to revise the previous arrangement, one of the people said.

Companies with weighted voting rights and a secondary listing are not currently included in the stock connect and there’s been no precedent for such a move, a Hong Kong Exchange spokesman said in response to questions on the agreement. “We look forward to discussing the potential for this with relevant parties in the future,” he said. “More generally, HKEX is not in the habit of banning things that it considers positive for the market.”

Alibaba is not included in the current batch of companies to be included in the stock connect, said a separate person, adding that the list will be updated on Feb. 17.

Representatives at Alibaba and the Shanghai Stock Exchange declined to comment. Shenzhen Stock Exchange and China’s stock market watchdog, the China Securities Regulatory Commission, didn’t immediately reply to emails seeking comment.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 227.06.

The projected lower bound is: 205.32.

The projected closing price is: 216.19.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 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 50.3590. This is not an overbought or oversold reading. The last signal was a sell 2 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 50.37. 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 17 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 -1. 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 2 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed down -0.760 at 215.770. Volume was 47% above average (neutral) and Bollinger Bands were 23% wider than normal.

Open     High      Low     Close     Volume___
213.500 215.770 212.360 215.770 5,125,354
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 214.68 212.64 182.24
Volatility: 39 33 36
Volume: 3,575,541 3,459,784 3,560,685

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 18.4% 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 10 periods.

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