Alibaba Group Holding Limited (NYSE:BABA) seeing bullish betting ahead of trade talks
The potential for a deal between the US and China has some people betting that Alibaba (BABA) rises sharply by the middle of September based on an options market analysis. An analysis of the charts also suggests the stock rises soon as it approached a significant breakout. This analysis would indicate that some are betting there’s a pause in the US/China trade dispute.
The last time I wrote on Alibaba was on May 13 at the time I had noted the stock could fall to around $151.60 from its then price of about $170. The stock ended up falling to a low of $147.95 on May 31.
Technical Analysis Is Bullish
The chart shows that Alibaba has been challenging technical resistance at $166.60 for the past two days. Should the stock be able to close above this price point successfully, it could result in the stock breaking out and rising to as high as $179.50, a gain of about 9% from its current price of about 8.6%.
The relative strength index also is starting to trend higher once again, which is a bullish indicator for momentum.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 175.34.
The projected lower bound is: 154.73.
The projected closing price is: 165.04.
A black body occurred (because prices closed lower than they opened).
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 24 white candles and 26 black candles for a net of 2 black 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 59.5394. This is not an overbought or oversold reading. The last signal was a sell 5 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 54.25. 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 11 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 115.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 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 9 period(s) ago.
Rex Takasugi – TD Profile
ALIBABA GRP ADR closed down -0.050 at 165.460. Volume was 22% above average (neutral) and Bollinger Bands were 15% narrower than normal.
Open High Low Close Volume___
167.520 167.900 163.440 165.460 4,193,390
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 159.76 172.00 162.69
Volatility: 33 38 44
Volume: 4,298,958 4,026,319 4,013,942
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 1.7% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 0 periods.