Alibaba Group Holding Limited (NYSE:BABA) digital media segment is proving to be a big contributor to the company’s ecosystem
Alibaba (BABA) is making heavy investments in original content. It is also using the different platforms owned by the company to drive sales and build more loyalty among customers. Alibaba Pictures had a great start to the Chinese New Year holiday. It launched five of the eight movies released in that week. This includes the box office success The Wandering Earth, which has raked in $610 million since its opening. The combined box office receipt of the five movies is $855 million.
These successes should help the long-term growth of its digital media platform. Alibaba is also investing heavily in original content. In the recent quarter, this segment reported a loss of $878 million as heavier investments are made to expand the original programming library of the company. The digital content investments by Alibaba should help the company attract more subscriptions and also increase the loyalty towards its core commerce platform.
The Wandering Earth was co-financed by Alibaba Pictures. Alibaba owns 51% of Alibaba Pictures. The Wandering Earth will probably be one of the biggest hits in the Chinese market. Alibaba has used all the various platforms it owns to boost the sales of this movie. The film was promoted on the landing page of e-wallet Alipay and the e-commerce platforms Tmall and Taobao owned by Alibaba. Fullscreen advertisements were also placed on Ele.me, Koubei, Youku and Damai.
According to recent quarterly report, the mobile monthly active users (MAUs) for the retail platform is at 699 million. Alibaba can use the vast reach of these platforms to promote new films and improve their sales. Other films released by Alibaba Pictures during the Chinese New Year holidays are Integrity, Pegasus, The New King of Comedy, and Peppa Celebrates Chinese New Year. The combined receipts of these films is RMB 5.8 billion, or $855 million, in the first week with 130 million people going to movie theatres. 91% of the tickets were booked online.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 161.74.
The projected upper bound is: 195.51.
The projected lower bound is: 174.98.
The projected closing price is: 185.24.
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 29 white candles and 21 black candles for a net of 8 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 96.5863. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 13 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 76.97. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 13 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 150.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 period(s) ago.
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 up 1.040 at 184.580. Volume was 32% below average (neutral) and Bollinger Bands were 13% narrower than normal.
Open High Low Close Volume___
181.700 184.920 180.920 184.580 2,749,307
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 174.48 156.12 168.75
Volatility: 28 44 43
Volume: 2,912,436 3,462,427 4,192,357
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.
ALIBABA GRP ADR is currently 9.4% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into BABA.N (mildly bullish). Our trend forecasting oscillators are currently bullish on BABA.N and have had this outlook for the last 30 periods. Our momentum oscillator is currently indicating that BABA.N is currently in an overbought condition.
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