Alibaba Group Holding Limited (NYSE:BABA) Daniel Zhang, Alibaba’s next chairman

Alibaba Group Holding Limited (NYSE:BABA) Daniel Zhang, Alibaba’s next chairman

Alibaba Group Holding Limited (NYSE:BABA) Daniel Zhang, Alibaba’s next chairman

The name of Daniel Zhang, or Zhang Yong in Chinese, has grabbed the headlines as Jack Ma, co-founder and chairman of e-commerce giant Alibaba, announced on Monday his plans to step down on Sept 10 next year and hand over control of Alibaba to Zhang, the current CEO of the company.

Alibaba’s stock has grown 87 percent since Zhang became CEO of the company in May 2015, and has a market value of around $420 billion, according to Fortune magazine.

The 46-year-old Shanghai native joined the company in 2007 as CFO of Taobao marketplace, Alibaba’s online ecommerce platform, and has gradually risen up the ranks.

Contrast to founder Jack Ma, Zhang has kept a much lower profile.

“We don’t know much about (Zhang) even though he’s been CEO for a while, because he’s by nature a very low-key person, low profile. He’s happy to not be in the limelight,” said Duncan Clark, author of “Alibaba: The House that Jack Built”, according to a Reuters report.

Zhang has admitted as much himself. “Jack Ma is a guy with many ideas. He is very, very creative,” Zhang said in an interview with the Financial Times last year. “But I’m the guy who always wants to put my foot on the ground.”

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 179.20.

The projected upper bound is: 170.98.

The projected lower bound is: 150.94.

The projected closing price is: 160.96.

Candlesticks

A white body occurred (because prices closed higher 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 18 white candles and 32 black candles for a net of 14 black 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 30.3940. This is not an overbought or oversold reading. The last signal was a buy 0 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 37.10. 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 -80. 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 5 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed up 4.000 at 161.460. Volume was 92% above average (neutral) and Bollinger Bands were 26% wider than normal.

Open High Low Close Volume___
158.190 162.810 156.200 161.460 8,177,865

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

Moving Averages: 10-period 50-period 200-period
Close: 166.03 179.99 185.37
Volatility: 41 36 39
Volume: 5,608,498 4,447,727 4,182,467

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 12.9% below 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 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 56 periods.

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