Alibaba Group Holding Limited (NYSE:BABA) Expanding Product Portfolio

Alibaba Group Holding Limited (NYSE:BABA) Expanding Product Portfolio

Alibaba Group Holding Limited (NYSE:BABA) Expanding Product Portfolio

Alibaba has introduced several products and enhancements over the past few years. The company has invested in big data and AI technologies. It has expanded itself on a global basis, which is considered to be a key differentiator, thereby giving it a competitive advantage.

In a recent report, Gartner projected the public cloud market to reach $411.4 billion by 2020. We believe that Alibaba, given ongoing initiatives, is well poised to grab the growth opportunity.

The latest move bodes well for the company’s strong focus on expansion of the product portfolio, which will help it in gaining momentum in the cloud industry.

This move will help the company to gain a stronger foothold in the growing Asian region and beyond.

Recently, Alibaba added nine new partners to the EMEA Ecosystem Partner Program. The new partners include Cloud Temple, Equinix, EVA Group, Groupe Cyllene, GTI Software & Networking, PROJIXI Europe, SKALE-5, SMILE, and Xebia.

We believe the company’s robust and innovative portfolio will aid the adoption rate of Alibaba Cloud. This will improve its customer base, which will in turn drive top-line growth.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 166.06.

The projected upper bound is: 163.88.

The projected lower bound is: 143.67.

The projected closing price is: 153.77.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

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 53.5721. This is not an overbought or oversold reading. The last signal was a buy 3 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 36.54. 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 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 -14. This is not a topping or bottoming area. The last signal was a buy 4 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 buy 1 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed up 2.730 at 154.230. Volume was 18% below average (neutral) and Bollinger Bands were 71% wider than normal.

Open High Low Close Volume___
152.490 155.670 152.430 154.230 2,730,250

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

Moving Averages: 10-period 50-period 200-period
Close: 152.41 175.24 163.30
Volatility: 26 37 44
Volume: 5,082,931 3,754,390 4,040,605

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 5.6% below 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 moderate flows of volume out of BABA.N (mildly bearish). Our trend forecasting oscillators are currently bearish on BABA.N and have had this outlook for the last 20 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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