Alibaba Group Holding Limited (NYSE:BABA) raised its stake in top domestic investment bank China International Capital Corp
China’s e-commerce giant Alibaba Group Holding Ltd has raised its stake in top domestic investment bank China International Capital Corp’s Hong Kong-listed shares to nearly 12 percent, an exchange disclosure showed on Monday.
The internet giant bought 117 million CICC H-shares – as those listed in Hong Kong are known – at an average price of HK$15.50.
That indicates a total investment of HK$1.81 billion ($230.61 million), according to Reuters calculations based on the Hong Kong Exchange disclosure.
The investment means Alibaba is now the second-largest stakeholder of CICC’s H-shares, with an 11.74 percent stake.
Its arch-rival, social media giant Tencent Holdings, is the largest with a 12.01 percent stake, a separate exchange disclosure shows.
China’s powerful tech firms have expanded aggressively into the booming fintech sector by partnering with traditional financial institutions.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 156.27.
The projected upper bound is: 180.38.
The projected lower bound is: 160.46.
The projected closing price is: 170.42.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 26 white candles and 24 black candles for a net of 2 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 53.9707. This is not an overbought or oversold reading. The last signal was a sell 7 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 63.48. 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 7 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 51. This is not a topping or bottoming area. The last signal was a sell 7 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 4 period(s) ago.
Rex Takasugi – TD Profile
ALIBABA GRP ADR closed up 4.030 at 170.180. Volume was 40% below average (neutral) and Bollinger Bands were 9% narrower than normal.
Open High Low Close Volume___
166.990 171.130 166.500 170.180 2,593,326
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 168.79 153.01 169.17
Volatility: 30 43 43
Volume: 2,218,547 3,540,727 4,262,255
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.
ALIBABA GRP ADR is currently 0.6% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 24 periods.