Alibaba Group Holding Limited (NYSE:BABA) Investing in Focus Media

Alibaba Group Holding Limited (NYSE:BABA) Investing in Focus Media

Alibaba Group Holding Limited (NYSE:BABA) Investing in Focus Media

Alibaba is investing big bucks into offline distribution. The Chinese e-commerce giant has forked out $2.23 billion in exchange for a sizeable piece of Focus Media, a Shanghai-based company that operates outdoor digital advertising screens across China, Singapore and Hong Kong, according to a U.S. filing.

The deal itself is broken up into a few pieces. Alibaba itself is paying $1.43 billion for a 6.62 percent share of Focus Media, which is listed in Shanghai, It is also spending $504.7 million to buy 10 percent of an entity (managed by Focus Media founder and chairman Jason Nanchun Jiang) which controls 23.34 percent of Focus Media.

Alibaba Group Holding Limited (BABA) stock managed performance 0.06% over the last week and switched with performance of -7.37% throughout past one month period. The stock price exposed a move of 11.73% so far this year and uncovered flow of 27.40% in recent year. The shares price displayed 7.81% return during the recent quarter while it has presented performance of 5.63% over the past six months. The stock exhibited 30.62% change to a low over the previous 12 months and manifested move of -8.99% to a high over the same period.

Moving toward the technical facts, its current distance from 20-Day Simple Moving Average is -0.14% and standing -2.39% away from 50-Day Simple Moving Average while traded 3.56% away from 200-Day Simple Moving Average.

Analysts expected the average price target of $251.16 that is probable to reach in coming one year period.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 199.93.

The projected lower bound is: 181.47.

The projected closing price is: 190.70.

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 23 white candles and 27 black candles for a net of 4 black 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 60.3062. This is not an overbought or oversold reading. The last signal was a sell 5 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 46.06. 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 28 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 58. This is not a topping or bottoming area. The last signal was a buy 10 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 4 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed down -1.870 at 190.790. Volume was 45% below average (neutral) and Bollinger Bands were 12% narrower than normal.

Open High Low Close Volume___
193.000 193.000 189.950 190.790 2,061,581

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

Moving Averages: 10-period 50-period 200-period
Close: 190.59 197.37 186.25
Volatility: 27 30 38
Volume: 2,752,587 3,672,836 3,881,806

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 2.4% above its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 17 periods.

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