Alibaba Group Holding Limited (NYSE:BABA) has signed an agreement with the Yiwu government

Alibaba Group Holding Limited (NYSE:BABA) has signed an agreement with the Yiwu government

Alibaba Group Holding Limited (NYSE:BABA) has signed an agreement with the Yiwu government

Reportedly, Alibaba Group Holding Limited BABA has signed an agreement with the Yiwu government to establish an e-commerce trade hub under the Electronic World Trade Platform (eWTP) initiative.

Located in the province of Zhejiang, Yiwu is the world’s largest wholesale market for daily commodities. It attracts more than 500,000 buyers from around the world every year. Also, it exports goods to more than 200 countries and regions.

This deal will allow Yiwu’s small sellers to gain a quick access to overseas buyers, digital services and infrastructure, thereby enhancing trade activities in the city.

The deal is inline with Alibaba’s strategy of enhancing cross border e-commerce activities and setting up an equitable platform for small players in the global trade market.

The company expects this move to help it in increasing e-commerce activities and gaining greater logistics efficiency.

Coming to share price performance, the company’s shares have lost 17% in the past year compared with the industry’s decline of 8.6%.

China Holds Promise

Per the latest report from Statista, revenues in the e-commerce market of China are expected to witness a CAGR of 11% between 2019 and 2023.

This immense growth potential of the market can be attributed to rising demand for apparel in the fashion world.

We believe that Alibaba is well poised to gain momentum in the country’s e-commerce market with the help of the logistics service platform.

Summing Up

The Chinese e-commerce giant is consistently trying to expand e-commerce presence on a worldwide basis and capitalize on increasing online demand in international markets.

In this regard, the company had announced a plan to set up an e-commerce hub in Malaysia in 2017. Since then, the eWTP project launched hubs in Hangzhou (China), Belgium and Rwanda. These hubs include logistics, cloud computing, and e-financial service for boosting trade as well as e-commerce in the region.

The Yiwue WTP Pilot Area is the fifth eWTP hub under the global eWTP initiative. The latest deal will further strengthen Alibaba’s e-commerce activities in China.

Alibaba’s chief executive officer Daniel Zhang said, “Alibaba Group and Yiwu both have a long history of enabling small businesses to participate in global trade. While Yiwu brings together buyers from around the world, Alibaba’s platforms also bring together millions of merchants and hundreds of millions of consumers. The synergy of the two ecosystems will create value for our communities of users.”

Overall, the bias in prices is: Upwards.

The projected upper bound is: 178.14.

The projected lower bound is: 157.38.

The projected closing price is: 167.76.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 78.2239. This is not an overbought or oversold reading. The last signal was a sell 8 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 57.34. 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 14 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 95. This is not a topping or bottoming area. The last signal was a sell 0 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 12 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed up 0.550 at 168.100. Volume was 29% above average (neutral) and Bollinger Bands were 12% wider than normal.

Open High Low Close Volume___
168.500 168.880 165.800 168.100 4,576,994

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 163.59 170.91 162.66
Volatility: 28 38 44
Volume: 4,505,973 4,166,435 4,007,374

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 3.3% 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 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 3 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH