Alibaba Group Holding Limited (NYSE:BABA) Intends to Offer Third-Party Vendor Service on Alipay

Alibaba Group Holding Limited (NYSE:BABA) Intends to Offer Third-Party Vendor Service on Alipay

Alibaba Group Holding Limited (NYSE:BABA) Intends to Offer Third-Party Vendor Service on Alipay

Alibaba Group Holding Limited’s BABA affiliate Ant Financial is leaving no stone unturned to strengthen its capabilities beyond financial services.

This is evident from the company’s recent plans to bring third-party vendors on its mobile payment platform called Alipay. It intends to offer retail, food and healthcare-related services with the help of these vendors on Alipay.

Ant Financial strives for further value-creation with respect to its users. To this end, it is aggressively looking to provide food delivery and hotel bookings services via Alipay.

We believe, the latest move is likely to aid its competitive edge against other players in China like Tencent and Meituan-Dianping.

Moreover, the latest strategic move bodes well for the company under the current global health crisis induced by the novel coronavirus, which is placing people under house arrest. However, due to the COVID-19 scare, the adoption of apps and Internet-based services is increasing rapidly.

Alibaba successfully encouraged developers to create mini-programs for the third-party vendors, devising 181 of those on Alipay despite the coronavirus impact. Also, delivery services were introduced recently on Alipay by one of the vendors during this period.

Additionally, the company’s Alipay-based value-addition efforts are expected to attract users as well as enrich the experience of the existing users, which in turn, will bolster its user base.

Notably, customer-centric approaches of the company are expected to boost investors’ confidence in the near term.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 211.78.

The projected lower bound is: 185.38.

The projected closing price is: 198.58.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 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 33.2547. This is not an overbought or oversold reading. The last signal was a sell 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 39.94. 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 38 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 -140.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. 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 13 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed down -7.480 at 198.910. Volume was 12% above average (neutral) and Bollinger Bands were 25% wider than normal.

Open     High      Low     Close     Volume___
200.710 203.100 196.160 198.910 4,510,697
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 206.24 215.21 185.91
Volatility: 50 40 36
Volume: 5,573,909 3,658,589 3,595,967

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 7.0% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 31 periods.

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