Alibaba Group Holding Limited (NYSE:BABA) E-Commerce Business Should Boost BABA Stock
BABA’s e-commerce platforms continue to grow at a solid pace. In the third quarter, the segment’s revenues jumped 56% year-over-year to $10.5 billion. The number of consumers who used the platform during the previous year jumped 25 million versus Q2 to a total of 601 million. Finally, the unit’s mobile MAUs (Monthly Active Users) surged 32 million to 666 million.
One key to BABA’s growth has been its major investments in Taobao, its primarily consumer-driven, e-commerce website. The website’s user interface has been revamped, making it easier for merchants and consumers to use it. Taobao has also increased its use of artificial intelligence and has improved its recommendation feed. Another one of Alibaba’s consumer-driven, e-commerce websites, Tmall, has also been improved.
Long-term, continuous positive catalysts should drive BABA’s e-commerce revenue higher, lifting BABA stock. These catalysts are expected to boost China’s e-commerce spending from $470 billion in 2018 to $839.54 billion by 2021.
Overall, the bias in prices is: Sideways
By the way, prices are vulnerable to a correction towards 148.10.
The projected upper bound is: 159.13.
The projected lower bound is: 134.74.
The projected closing price is: 146.93.
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.
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 91.1818. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 5 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 54.46. 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 8 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 177.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 2 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 3.690 at 146.790. Volume was 21% below average (neutral) and Bollinger Bands were 10% wider than normal.
Open High Low Close Volume___
145.000 147.540 142.060 146.790 3,714,756
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 138.14 146.56 171.37
Volatility: 57 54 44
Volume: 3,258,004 4,632,584 4,262,905
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 14.3% 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 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 14 periods.