Alibaba Group Holding Limited (NYSE:BABA) Target Price $187.00
Alibaba Group Holding is poised for extremely high earnings growth in the near future. The consensus forecast from 48 analysts is extremely positive with earnings forecasted to rise significantly from today’s level of CN¥25.063 to CN¥56.053 over the next three years. This results in an annual growth rate of 20.05%, on average, which indicates an exceedingly positive future in the near term.
Alibaba Group Holding is trading at price-to-earnings (PE) ratio of 52.04x, this tells us the stock is overvalued compared to the US market average ratio of 18.54x , and overvalued based on current earnings compared to the internet industry average of 31.54x .
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 193.40.
The projected upper bound is: 214.93.
The projected lower bound is: 196.26.
The projected closing price is: 205.59.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 25 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 52.7073. 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 63.27. 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 sell 1 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 41. This is not a topping or bottoming area. The last signal was a sell 1 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 4 period(s) ago.
Rex Takasugi – TD Profile
ALIBABA GRP ADR closed up 1.450 at 205.070. Volume was 15% below average (neutral) and Bollinger Bands were 32% narrower than normal.
Open High Low Close Volume___
201.050 206.230 200.450 205.070 3,356,101
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 203.18 187.54 183.22
Volatility: 27 32 37
Volume: 4,053,746 3,564,851 3,952,344
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 11.9% 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 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 24 periods.