Alibaba Group Holding Limited (NYSE:BABA) stock has rebounded after a tough year, but is it worth buying now?
Alibaba Group Holding Ltd (NYSE:BABA) stock is already up 33% year-to-date, enabling it to more than gain back the ground it lost last year.
In 2018, BABA stock fell 20% amid concern over Alibaba’s profit margin and the impact of the trade war on China’s economy. The decline of Alibaba stock came as Chinese stocks experienced their worst year in a decade, and at one point, Alibaba was the world’s most shorted stock.
Alibaba announced its earnings on Jan. 30. Its revenue grew 41% year-over-year. However, that was Alibaba’s slowest top-line growth in three years. Meanwhile, the conglomerate’s net income rose 37% to $4.92 billion.
Alibaba has been busy over the past week, announcing several deals.
On Feb. 14, Alibaba’s Ant Financial announced that it would purchase WorldFirst, a British fintech startup that specializes in international money transfers. That same day, Alibaba invested in Bilibili Inc (NASDAQ:BILI), a video-streaming site which specializes in anime, comics and video games.
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 159.13.
The projected upper bound is: 194.15.
The projected lower bound is: 173.61.
The projected closing price is: 183.88.
A white body occurred (because prices closed higher 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 27 white candles and 23 black candles for a net of 4 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 6 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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 95.6486. 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 76.01. 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 sell 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 289.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 0 period(s) ago.
Rex Takasugi – TD Profile
ALIBABA GRP ADR closed up 6.330 at 183.250. Volume was 24% above average (neutral) and Bollinger Bands were 20% narrower than normal.
Open High Low Close Volume___
181.000 183.700 180.900 183.250 5,074,476
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 171.28 154.82 168.86
Volatility: 29 44 43
Volume: 2,701,002 3,474,642 4,206,371
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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
ALIBABA GRP ADR is currently 8.5% 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 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 28 periods. Our momentum oscillator is currently indicating that BABA.N is currently in an overbought condition.