Alibaba Group Holding Limited (NYSE:BABA) expected to rise 54 percent within 12 months
hares in Alibaba Holdings Ltd. (NYSE: BABA) closed up $2.14 Wednesday after Goldman Sachs set its price target of the Chinese e-commerce giant at 54 percent on the upside and reiterated its “buy” rating.
“We remain impressed with Alibaba’s overall leverage to China consumption growth given its strategy, positioning, ability to build new businesses (such as new retail) and its execution,” analyst Piyush Mubayi said.
Mubayi also raised his 12-month price target of Alibaba by $6 to $247 per share.
“We expect Alibaba to continue to invest for future growth on multiple fronts,” he said. Specifically, Goldman sees potential in Alibaba’s cloud and financial services, as reported by CNBC.
“We believe Ant Financial will continue to be the ‘enabler’ of Alibaba’s New Retail strategy and help the company navigate the globalization road map,” Mubayi said.
Alibaba’s stock ended the day at $162.37 per American depositary share, up 1.3 percent.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 172.13.
The projected lower bound is: 151.55.
The projected closing price is: 161.84.
A black body occurred (because prices closed lower 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 19 white candles and 31 black candles for a net of 12 black candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 5 rising windows in the last 50 candles–this makes the current rising window even more 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 27.2304. This is not an overbought or oversold reading. The last signal was a buy 15 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 44.36. 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 16 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 -8. This is not a topping or bottoming area. The last signal was a buy 15 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 10 period(s) ago.
Rex Takasugi – TD Profile
ALIBABA GRP ADR closed up 2.140 at 162.370. Volume was 41% below average (neutral) and Bollinger Bands were 45% narrower than normal.
Open High Low Close Volume___
163.000 164.530 161.940 162.370 2,512,938
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 163.90 172.11 184.38
Volatility: 22 38 39
Volume: 3,087,687 4,721,423 4,045,012
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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
ALIBABA GRP ADR is currently 11.9% below its 200-period moving average and is in an downward 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 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 1 periods.
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