Alibaba Group Holding Limited (NYSE:BABA) Macro Risks Have Minimal Impact

Alibaba Group Holding Limited (NYSE:BABA) Macro Risks Have Minimal Impact

Alibaba Group Holding Limited (NYSE:BABA) Macro Risks Have Minimal Impact

Alibaba is largely unaffected by the trade war between the two giants, China and the U.S., but the market still punished Alibaba stock in the last few months for good reason.

Even though much of Alibaba’s revenue growth is from the domestic market, customers may have lower disposable income as a result of a slowdown in global trade.

The good news is that trade relations between the two countries are better today than before the G20 meeting in Buenos Aires. Prior to that event, the two were not even on speaking terms.

After negotiating trading terms at the G20 meeting, China cut auto tariffs imposed on the U.S. and may resume the purchase of soybean next. As international trading activities increase, China’s economy will benefit and consumers will be more willing to spend.

Overall, the bias in prices is: Downwards

The projected upper bound is: 156.58.

The projected lower bound is: 130.90.

The projected closing price is: 143.74.

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 25.6951. 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 39.57. 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 44 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 -170.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 8 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 5 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed down -5.020 at 143.980. Volume was 13% below average (neutral) and Bollinger Bands were 17% narrower than normal.

Open High Low Close Volume___
146.450 147.850 142.240 143.980 4,323,783

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

Moving Averages: 10-period 50-period 200-period
Close: 153.02 148.88 175.15
Volatility: 29 56 43
Volume: 4,397,622 5,007,308 4,278,413

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 17.8% 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 0 periods.

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