Alibaba Group Holding Limited (NYSE:BABA) earnings report highlights

Alibaba Group Holding Limited (NYSE:BABA) earnings report highlights

Alibaba Group Holding Limited (NYSE:BABA) earnings report highlights

Alibaba said it expects revenue for the full fiscal year ending in March 2020 to top 500 billion yuan, which will be a 33% year-on-year increase.

Net income attributable to ordinary shareholders rose to 25.83 billion yuan, from 7.56 billion yuan in the same period a year earlier.

The group said sales came mainly through selling advertising and promotional services to third-party merchants that post products on two of its e-commerce websites, Taobao and Tmall. The firm’s focus on customers in more rural areas has paid off, as over the past year, more than 70% of the increase in annual active customers came from less developed cities in China.

Alibaba said its mobile monthly users reached 721 million in March, an increase of 22 million in three months and 104 million shoppers compared to a year ago.

The group which has invested heavily in cloud computing, saw revenue for this business segment rise by 76% in the fourth quarter.

Tapped by chairman Jack Ma to be his successor in September 2018, chief executive Daniel Zhang will formally replace Mr Ma later this year. Mr Zhang is the mastermind behind the world’s largest retail event Singles’ Day, which is held annually on November 11.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 184.87.

The projected lower bound is: 165.93.

The projected closing price is: 175.40.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with ALIBABA GRP ADR), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

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 56.3736. This is not an overbought or oversold reading. The last signal was a buy 4 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 41.76. 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 sell 50 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 -66. This is not a topping or bottoming area. The last signal was a buy 1 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 7 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed down -2.030 at 175.570. Volume was 33% above average (neutral) and Bollinger Bands were 18% wider than normal.

Open High Low Close Volume___
178.250 178.250 174.750 175.570 4,078,914

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

Moving Averages: 10-period 50-period 200-period
Close: 179.95 182.44 164.99
Volatility: 47 33 43
Volume: 4,381,322 2,963,906 4,027,985

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 6.4% above its 200-period moving average and is in an downward trend. Volatility is high 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 bearish on BABA.N and have had this outlook for the last 5 periods.

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