Alibaba Group Holding Limited (NYSE:BABA) secondary listing in Hong Kong is the world’s largest offering so far this year
Chinese e-commerce giant Alibaba (NYSE:BABA) Group Holding Ltd (HK:9988)’s shares in Hong Kong continued to dip on Monday after having risen nearly 10% since its high-profile debut last week.
The stock currently trades at HK$196.40 by 11:57 PM ET (03:57 GMT), down 1.01%. Last Thursday, it reached a peak at HK$204.
The e-commerce giant’s stock failed to ride on the recovery of the Hang Seng, which was up 128 points when the market opened this morning thanks to positive Chinese economic data. China’s Caixin/Markit PMI came at 51.8, better than the expected 51.4.
In mid-morning, the stock saw a 40,000 share block trade selloff, causing a drop in its prices. Its momentum has slowed since becoming the most active stock in Hong Kong and accounting for more than a 10th of total market turnover by value last week.
Alibaba’s secondary listing in Hong Kong is the world’s largest offering so far this year. The stock will join the Hang Seng Composite Index from Dec. 9.
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 179.74.
The projected upper bound is: 210.65.
The projected lower bound is: 190.14.
The projected closing price is: 200.39.
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.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 97.1576. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 11 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 73.39. This is where it usually tops. 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 81 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 179.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 11 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 buy 2 period(s) ago.
Rex Takasugi – TD Profile
ALIBABA GRP ADR closed down -0.820 at 200.000. Volume was 30% above average (neutral) and Bollinger Bands were 9% wider than normal.
Open High Low Close Volume___
199.700 200.430 198.380 200.000 4,241,689
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 189.53 177.82 174.65
Volatility: 26 37 36
Volume: 5,778,044 3,685,449 3,409,147
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 14.5% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect very strong flows of volume into BABA.N (bullish). Our trend forecasting oscillators are currently bullish on BABA.N and have had this outlook for the last 22 periods. Our momentum oscillator is currently indicating that BABA.N is currently in an overbought condition.