Alibaba Group Holding Limited (NYSE:BABA) possible investment restrictions is the latest U.S. attempt to decouple from China

Alibaba Group Holding Limited (NYSE:BABA) possible investment restrictions is the latest U.S. attempt to decouple from China

Alibaba Group Holding Limited (NYSE:BABA) possible investment restrictions is the latest U.S. attempt to decouple from China

Beijing called Washington’s potential restrictions on U.S. investments in China “the latest attempt at a decoupling,” in a Global Times piece published on Sunday.

The Chinese state-owned media said that even news of measures like delisting Chinese companies from American stock exchanges “is expected to have significant repercussions for the Chinese and US economies, as well as their companies, in the future.”

The White House has discussed some curbs on U.S. investments in China, a source familiar with the matter told CNBC last Friday.

But U.S. Treasury assistant secretary for public affairs, Monica Crowley, said in a statement over the weekend that “the administration is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time. We welcome investment in the United States.”

Still, the Chinese propaganda arm criticized the move by the U.S. politicians, saying that they “seem to believe that a decoupling from China will be simple” and “won’t significantly impact its economy.”

Meanwhile, China’s top trade negotiator will be leading the country’s delegation to the U.S. for the next round of discussions one week after China’s National Holiday, Commerce Ministry Vice Minister Wang Shouwen said Sunday.

The U.S. and China have been locked in a protracted trade war for more than a year, with each country slapping tariffs on goods worth billions of dollars.

Chinese tech giants listed in the U.S. immediately reacted. Alibaba shares slipped more than 5% on the reports, while Baidu and JD.com also fell 3.6% and 6% respectively on Friday after the news came out.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 176.80.

The projected lower bound is: 154.89.

The projected closing price is: 165.84.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 22 white candles and 28 black candles for a net of 6 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 27.3648. This is not an overbought or oversold reading. The last signal was a buy 1 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 39.88. 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 37 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 -217.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 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 3 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed down -9.020 at 165.980. Volume was 59% above average (neutral) and Bollinger Bands were 45% narrower than normal.

Open     High      Low     Close     Volume___
176.000 176.490 163.150 165.980 5,623,903
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 176.52 171.95 168.95
Volatility: 45 41 38
Volume: 3,409,873 2,987,741 3,389,444

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 1.8% below its 200-period moving average and is in an upward 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 bullish on BABA.N and have had this outlook for the last 26 periods.

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