Alibaba Group Holding Limited (NYSE:BABA) earnings and revenue estimates expected to rise
The G20 meeting between the US and China appears to have gone well, as the two countries are once again talking and trying to resolve trade issues. As a result, the Chinese renminbi (NYSEARCA:RMB) has started to strengthen again. That’s a positive signal for Alibaba Group Holding Ltd. (BABA) and is likely to result in Alibaba’s earnings and revenue estimates to rise. Should that happen, Alibaba’s stock is likely to rise as well.
Since the middle of April, earnings estimates for Alibaba’s fiscal 2019 have fallen 22%. During the same time, the RMB has weakened by almost 10%. Should the Renminbi reverse its weakening trend and begin to strengthen, then Alibaba’s stock will benefit. The company collects revenue in RMB and converts to dollars – a weaker currency has hurt the company’s results.
Overall, the bias in prices is: Downwards
The projected upper bound is: 164.57.
The projected lower bound is: 138.57.
The projected closing price is: 151.57.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
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 18.9331. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 48.60. 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 40 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 -31. This is not a topping or bottoming area. 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 sell 1 period(s) ago.
Rex Takasugi – TD Profile
ALIBABA GRP ADR closed up 0.400 at 151.830. Volume was 32% below average (neutral) and Bollinger Bands were 12% narrower than normal.
Open High Low Close Volume___
155.230 156.240 150.950 151.830 3,429,254
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 156.72 149.77 175.85
Volatility: 36 56 43
Volume: 5,955,748 5,008,886 4,293,816
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 13.7% below its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BABA.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BABA.N and have had this outlook for the last 17 periods.