Alibaba Group Holding Limited (NYSE:BABA) raises further US$1.7 billion in over-allotted shares in HK listing

Alibaba Group Holding Limited (NYSE:BABA) raises further US$1.7 billion in over-allotted shares in HK listing

Alibaba Group Holding Limited (NYSE:BABA) raises further US$1.7 billion in over-allotted shares in HK listing

Chinese e-commerce giant Alibaba BABA.N said on Tuesday it has raised an additional HK$13.17 billion ($1.68 billion) by exercising the over-allotment option in its Hong Kong secondary listing.

The company has received approval to list 75 million over-allotment shares at HK$176 per share, the same price it offered under its secondary listing, it said in a filing to the Hong Kong stock exchange.

The listing and dealing of the shares on the exchange would begin on Dec. 6, the company said.

Alibaba on Nov. 20 raised up to $12.9 billion in a landmark listing in Hong Kong, the largest share sale in the city in nine years and a world record for a cross-border secondary share sale.

In their first session of trade on Nov. 26, Alibaba’s Hong Kong shares closed up 6.6% higher from the issue price in heavy trading.

As of Tuesday’s closing price, the stock has climbed nearly 3% since its debut.

($1 = 7.8249 Hong Kong dollars)

Technical Indicators

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 180.70.

The projected upper bound is: 205.35.

The projected lower bound is: 185.16.

The projected closing price is: 195.26.

Candlesticks

A white body occurred (because prices closed higher 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 25 white candles and 24 black candles for a net of 1 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 72.1113. This is not an overbought or oversold reading. The last signal was a sell 0 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 63.10. 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 1 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 53. This is not a topping or bottoming area. The last signal was a sell 0 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.

ALIBABA GRP ADR closed down -1.410 at 194.900. Volume was 47% above average (neutral) and Bollinger Bands were 4% wider than normal.

Rex Takasugi – TD Profile

Open     High      Low     Close     Volume___
190.930 194.900 189.850 194.900 4,842,925
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 191.64 178.45 174.92
Volatility: 30 37 36
Volume: 6,228,587 3,614,140 3,428,700

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 11.4% above 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 moderate flows of volume into BABA.N (mildly bullish). Our trend forecasting oscillators are currently bullish on BABA.N and have had this outlook for the last 24 periods.

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