Alibaba Group Holding Limited (NYSE:BABA) stock is long-term winner with plenty of cash that actually looks attractively valued now

Alibaba Group Holding Limited (NYSE:BABA) stock is long-term winner with plenty of cash that actually looks attractively valued now

Alibaba Group Holding Limited (NYSE:BABA) stock is long-term winner with plenty of cash that actually looks attractively valued now

In the pantheon of U.S. companies, there have been instances where the CEO and/or founders are inextricably linked to those firms and, to some extent, the performance of the stocks. Think Warren Buffett at Berkshire Hathaway (NYSE:BKR-B), the late Steve Jobs at Apple (NASDAQ:AAPL) or Jeff Bezos at Amazon (NASDAQ:AMZN).

The best comparison offered by a Chinese company is Jack Ma of Alibaba Group (NYSE:BABA). All Ma has done is build Alibaba into the largest e-commerce company in the world’s largest internet market, while overseeing a double in Alibaba stock price since its initial public offering (IPO) roughly four years ago.

Described by some as flamboyant, Ma departs the $460 billion behemoth he founded on Tuesday. He will be succeeded by softer spoken accountant Daniel Zhang. On the surface, the Ma-to-Zhange transition looks a little bit like the move to Tim Cook at Apple after Jobs passed away. Alibaba stock investors can only hope Zhang can deliver appreciation that is even in the ballpark of what Cook has delivered for Apple investors.

Ma, China’s richest man, has pledged to stay on in some capacity, likely mentoring management. They found hand-picked Zhang, so that could be an important factor for Alibaba stock owners.

Zhang “has the logic and critical thinking skills of a super computer, a commitment to his vision, the courage to wholeheartedly dare to take on innovative business models and industries of the future,” said Ma when he made the announcement last year.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 169.60.

The projected upper bound is: 185.96.

The projected lower bound is: 166.26.

The projected closing price is: 176.11.

Candlesticks

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 22 white candles and 28 black candles for a net of 6 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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.

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 60.0000. This is not an overbought or oversold reading. The last signal was a sell 1 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 56.00. 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 25 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 58. This is not a topping or bottoming area. The last signal was a sell 3 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 7 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed up 1.100 at 176.090. Volume was 54% below average (consolidating) and Bollinger Bands were 24% narrower than normal.

Open     High      Low     Close     Volume___
176.000 176.660 174.150 176.090 1,740,210
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 174.65 170.67 167.70
Volatility: 30 37 38
Volume: 1,801,643 2,937,324 3,526,705

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 5.0% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 14 periods.

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