Alibaba Group Holding Limited (NYSE:BABA) stock is still on pace for double-digit gains this week

Alibaba Group Holding Limited (NYSE:BABA) stock is still on pace for double-digit gains this week

Alibaba Group Holding Limited (NYSE:BABA) stock is still on pace for double-digit gains this week

Alibaba’s newly listed Hong Kong shares got off to a rough start Friday, but the stock is still on pace for double-digit gains this week.Shares of the Chinese e-commerce company are now trading at 199.80 Hong Kong dollars ($25.52) each.

That’s slightly lower than Thursday’s close, but still nearly 14% higher than what the shares were priced at when Alibaba first started trading in Hong Kong on Tuesday.

The public offering has been a big boost of confidence for the Asian financial hub, which has been rattled by months of protests. Alibaba’s secondary listing could raise as much as $12.9 billion.

Technical Indicators

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 178.74.

The projected upper bound is: 211.48.

The projected lower bound is: 190.99.

The projected closing price is: 201.24.

Candlesticks

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 24 white candles and 25 black candles for a net of 1 black 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 5 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 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 98.3461. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 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 75.18. 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 80 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 271.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 10 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 1 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed up 6.120 at 200.820. Volume was 110% above average (neutral) and Bollinger Bands were 0% wider than normal.

Open     High      Low     Close     Volume___
197.000 200.980 197.000 200.820 6,834,999
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 187.81 177.43 174.49
Volatility: 25 37 36
Volume: 5,693,608 3,652,880 3,398,798

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 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 15.1% 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 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 21 periods. Our momentum oscillator is currently indicating that BABA.N is currently in an overbought condition.

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