Alibaba Group Holding Limited (NYSE:BABA) will reportedly end its $13 billion share sale early after attracting more investor demand than it could meet

Alibaba Group Holding Limited (NYSE:BABA) will reportedly end its $13 billion share sale early after attracting more investor demand than it could meet

Alibaba Group Holding Limited (NYSE:BABA) will reportedly end its $13 billion share sale early after attracting more investor demand than it could meet

Alibaba’s $13 billion Hong Kong stock offering will reportedly end early as investor demand outstrips available shares.

The company plans to close the sale to institutional investors at 12:00 p.m. Eastern Standard Time on Tuesday rather than the initially planned time of 4:00 p.m., according to The Wall Street Journal.

The offering is already several times subscribed, the WSJ reported, meaning investors are placing multiple times more share orders than Alibaba is currently offering.

Alibaba said in a press release on November 15 that it planned to set the price for its Hong Kong offering by November 20 partly based on the closing price of its American depositary shares listed on the New York Stock Exchange.

Shares of Alibaba traded around $184.44 a piece on Tuesday, bringing the company’s market capitalization to about $482.4 billion.

The company’s secondary listing in Hong Kong is expected to be one of the largest shares sales in the world this year, surpassing Uber’s $8.1 billion initial public offering in May. It is scheduled for November 26, The Wall Street Journal reported.

Ongoing violent protests throughout Hong Kong have continued to cast doubt over the city’s economy and role as a financial hub. Alibaba reportedly postponed its Hong Kong offering in late August due to the uncertainty around the protests.

Alibaba did not immediately respond to a request for comment on this story.

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 176.17.

The projected upper bound is: 195.11.

The projected lower bound is: 175.80.

The projected closing price is: 185.46.

Candlesticks

A black body occurred (because prices closed lower 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 23 white candles and 26 black candles for a net of 3 black candles.

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 64.2337. This is not an overbought or oversold reading. The last signal was a sell 4 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 60.22. 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 74 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 51. This is not a topping or bottoming area. The last signal was a sell 4 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 sell 1 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed up 0.640 at 185.250. Volume was 11% above average (neutral) and Bollinger Bands were 4% narrower than normal.

Open     High      Low     Close     Volume___
186.450 186.700 183.880 185.250 3,305,543
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 185.23 176.02 173.85
Volatility: 20 36 35
Volume: 3,529,974 2,960,421 3,231,328

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 6.6% 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 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 15 periods.

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