Alibaba Group Holding Limited (NYSE:BABA) reportedly working with financial advisors to raise $20 billion via a second listing as early as the latter half of 2019

Alibaba Group Holding Limited (NYSE:BABA) reportedly working with financial advisors to raise $20 billion via a second listing as early as the latter half of 2019

Alibaba Group Holding Limited (NYSE:BABA) reportedly working with financial advisors to raise $20 billion via a second listing as early as the latter half of 2019

E-commerce giant Alibaba Group Holdings is debating whether to offer new public shares through a listing in Hong Kong, Bloomberg reported Monday.

The offering could garner as much as $20 billion, the site reported.

China’s largest company is currently working with financial advisors to offer the second listing as early as the latter half of 2019, sources familiar with the matter told Bloomberg. The sources added that a key aim of the second listing would be to diversify its funding channels and bolster liquidity, especially as Chinese companies face increasingly heated barbs from the Trump administration.

Any second listing would come just a few years after Alibaba raised $25 billion on the New York Stock Exchange in 2014, the globe’s largest first-time share sale. Alibaba’s success in China — akin to that of Amazon’s in the United States — has pushed the company’s value to around $400 billion, with its stock up 13% in 2019. That’s slightly better than the S&P 500′s 12.7% gain during the same period.

Alibaba declined to comment on this story.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 172.91.

The projected upper bound is: 164.53.

The projected lower bound is: 144.46.

The projected closing price is: 154.49.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with ALIBABA GRP ADR), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

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 5.9780. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 10 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 28.08. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 3 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 -123.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 7 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 13 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed down -1.000 at 155.000. Volume was 29% above average (neutral) and Bollinger Bands were 119% wider than normal.

Open High Low Close Volume___
157.320 158.410 154.930 155.000 4,115,313

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

Moving Averages: 10-period 50-period 200-period
Close: 166.15 180.22 164.33
Volatility: 50 36 44
Volume: 5,078,651 3,270,636 4,057,775

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 5.7% below its 200-period moving average and is in an downward trend. Volatility is high 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 11 periods. Our momentum oscillator is currently indicating that BABA.N is currently in an oversold condition.

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