Alibaba Group Holding Limited (NYSE:BABA) e-commerce dominance is just the beginning
Alibaba is best known for its dominance in the e-commerce market in China, but the company is increasingly becoming a big player in the artificial intelligence space as well. Just a few months ago it announced that it’s developing its own AI chip, which will be available later this year.
The chip will be used in smart cities and autonomous vehicles, and will add to the company’s current smart city management projects. Alibaba also has its own AI-powered robot for the hospitality industry, and has developed an AI customer service agent for its logistics company, Cainiao. This laundry-list of AI pursuits means that Alibaba has a huge opportunity to benefit from China’s growing AI market in the coming years.
In the most recent quarter, Alibaba’s revenue increased 41% from the year-ago quarter to RMB 117.28 billion ($17.4 billion), and sales from the company’s core e-commerce business jumped 40% to RMB 102.84 billion ($15.25 billion). These quarterly results, released at the end of January, have helped push the company’s stock price up about 15% over the past three months.
Investors need to remember that this company is already a dominant tech player in China, and it’s in the early stages of becoming an AI powerhouse. As China’s government continues to focus its attention on making artificial intelligence a key part of its future, expect Alibaba’s AI ambitions to grow along with it.
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 154.91.
The projected upper bound is: 182.43.
The projected lower bound is: 161.50.
The projected closing price is: 171.96.
A black body occurred (because prices closed lower 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 28 white candles and 22 black candles for a net of 6 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 85.7669. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 11 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 70.59. 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 3 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 112.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 22 period(s) ago.
Rex Takasugi – TD Profile
ALIBABA GRP ADR closed down -0.310 at 171.520. Volume was 41% below average (neutral) and Bollinger Bands were 12% wider than normal.
Open High Low Close Volume___
171.840 173.030 170.000 171.520 2,596,746
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 164.42 151.35 169.49
Volatility: 41 45 43
Volume: 3,597,438 4,159,058 4,297,099
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 1.2% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 16 periods. Our momentum oscillator is currently indicating that BABA.N is currently in an overbought condition.
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