Alibaba Group Holding Limited (NYSE:BABA) concerns about an economic slowdown in China

Alibaba Group Holding Limited (NYSE:BABA) concerns about an economic slowdown in China

Alibaba Group Holding Limited (NYSE:BABA) concerns about an economic slowdown in China

Shares of Alibaba dipped just before market close Monday following a Wall Street Journal report citing President Michael Evans’ concerns about an economic slowdown in China.

The stock closed 1.35 percent down after trading up for most of the day.

“China has slowed down,” Evans said during a presentation at the National Retail Federation’s annual conference, according to the Journal. “As a $13 trillion economy, it would be quite unusual if it could continue to grow at 7 percent or 8 percent.”

Evans attributed the pull back in the Chinese economy to “natural causes” as well as ongoing trade tensions with the U.S., the newspaper reported.

Evans’ warning comes less than two weeks after Apple CEO Tim Cook cited headwinds in China as the main cause of a rare revenue shortfall for Apple. The country has emerged as something of a pain point for some of the world’s largest companies.

Alibaba in particular, with its global e-commerce business rooted firmly in both China and the U.S., stands to suffer from continuing trade challenges.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 160.97.

The projected lower bound is: 138.08.

The projected closing price is: 149.53.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white 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 82.8187. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 9 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 55.60. 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 12 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 83. This is not a topping or bottoming area. The last signal was a sell 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 buy 6 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed down -2.050 at 149.270. Volume was 41% below average (neutral) and Bollinger Bands were 5% wider than normal.

Open High Low Close Volume___
148.480 150.560 146.550 149.270 2,737,971

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 143.82 147.50 170.73
Volatility: 57 50 43
Volume: 3,493,689 4,487,861 4,247,893

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 12.6% below its 200-period moving average and is in an upward 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 moderate flows of volume out of BABA.N (mildly bearish). Our trend forecasting oscillators are currently bullish on BABA.N and have had this outlook for the last 0 periods.

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