Alibaba Group Holding Limited (NYSE:BABA) cloud computing arm is leaving no stone unturned to bolster presence

Alibaba Group Holding Limited (NYSE:BABA) cloud computing arm is leaving no stone unturned to bolster presence

Alibaba Group Holding Limited (NYSE:BABA) cloud computing arm is leaving no stone unturned to bolster presence

Alibaba’s BABA cloud computing arm is leaving no stone unturned to bolster presence in the cloud market on the back of robust product portfolio.

Recently, the company rolled out a set of more than 10 products based on emerging technologies to empower businesses in this digital world.

The products include Alibaba Log Service (SLS), Support of “Bring Your Own Key” (BYOK), SaaS Accelerator, Smart Access Gateway (SAG) Software and Container Service for Kubernetes (ACK), among others.

These products will enhance customer experience on its cloud platform. With these new products, Alibaba aims to accelerate proven technologies and further develop a collaborative management platform across various businesses.

In addition, the company unveiled a new accelerator program connecting technology partners with the Alibaba ecosystem.

This move is inline with its strategy to accelerate companies’ digital transformation.

Expanding Product Portfolio

Alibaba has introduced several products and enhancements over the past few years. The company has invested in big data and AI technologies. It has expanded itself on a global basis, which is considered to be a key differentiator, thereby giving it a competitive advantage.

In a recent report, Gartner projected the public cloud market to reach $411.4 billion by 2020. We believe that Alibaba, given ongoing initiatives, is well poised to grab the growth opportunity.

The latest move bodes well for the company’s strong focus on expansion of the product portfolio, which will help it in gaining momentum in the cloud industry.

This move will help the company to gain a stronger foothold in the growing Asian region and beyond.

Recently, Alibaba added nine new partners to the EMEA Ecosystem Partner Program. The new partners include Cloud Temple, Equinix, EVA Group, Groupe Cyllene, GTI Software & Networking, PROJIXI Europe, SKALE-5, SMILE, and Xebia.

We believe the company’s robust and innovative portfolio will aid the adoption rate of Alibaba Cloud. This will improve its customer base, which will in turn drive top-line growth.

Bottom Line

Alibaba Cloud’s continued efforts toward global expansion are likely to boost the company’s competitive position in the rapidly growing cloud market against the likes of Amazon AMZN, Microsoft MSFT and Alphabet’s GOOGL Google.

Per the latest report from Research and Markets, the global cloud infrastructure services market is expected to witness a CAGR of 28.21% between 2018 and 2022.

All these cloud providers are trying to fortify their presence in the emerging countries, where there is a growing need for cloud infrastructure.

In the recently reported quarter, cloud computing revenues were RMB7.7 billion (US$1.2 billion), up 76% from the year-ago period, driven by an increase in average spending per customer.

We believe Alibaba’s expanding solutions portfolio bodes well for its improving market share and competitive position in the cloud market.

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 166.46.

The projected upper bound is: 161.12.

The projected lower bound is: 141.09.

The projected closing price is: 151.11.

Candlesticks

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 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 48.3686. This is not an overbought or oversold reading. The last signal was a buy 1 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 31.53. 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 1 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 -58. This is not a topping or bottoming area. The last signal was a buy 2 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 20 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed down -2.500 at 151.650. Volume was 25% above average (neutral) and Bollinger Bands were 91% wider than normal.

Open High Low Close Volume___
155.000 156.110 149.350 151.650 4,177,919

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

Moving Averages: 10-period 50-period 200-period
Close: 153.32 176.23 163.51
Volatility: 28 36 44
Volume: 5,520,435 3,710,994 4,063,797

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 7.3% 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 moderate flows of volume out of BABA.N (mildly bearish). Our trend forecasting oscillators are currently bearish on BABA.N and have had this outlook for the last 18 periods.

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