Alibaba Group Holding Ltd (NYSE:BABA) Fights With SF Express

Alibaba Group Holding Ltd (NYSE:BABA) Fights With SF Express

Alibaba Group Holding Ltd (NYSE:BABA) Fights With SF Express

  • Alibaba is making another bet in India. After acquiring a majority stake in digital payments company Paytm, it has now acquired a majority stake in Chennai-based online movie ticketing website TicketNew, which claims to have a presence in over 30 cities across India, according to a PTI report.
  • Alibaba seems to be expanding its presence in the entertainment business. In 2015, Alibaba Pictures acquired movie ticketing software company Yueke. And last year, it acquired Chinese video-streaming website Youku Tudou for US$4 billion.
  • TicketNew is its first major acquisition outside China.
  • “Alibaba plans to invest to the tune of US$18.6 million over a period of time,” says Ramkumar Nammalvar, founder and CEO of TicketNew.
  • Alibaba and SF Express, China’s largest parcel carrier, have blocked access to each other’s data due to a dispute over the sharing of information related to customers’ packages, Bloomberg reports.
  • Alibaba customers who placed orders being shipped by SF Express are now unable to get any related tracking information, and the Chinese government has stepped in, telling both sides to resolve the issue as soon as possible.

Alibaba Group Holding Limited is a holding company. Through its subsidiaries, the Company is engaged in online and mobile commerce through offering of products, services and technology that enable merchants, brands and other businesses to transform the way they market, sell and operate in the People’s Republic of China (China) and internationally. Its businesses consist of core commerce, cloud computing, mobile media and entertainment, and other innovation initiatives. Through investee affiliates, it also participates in the logistics and local services sectors. Retail commerce in China operated by the Company includes the China online commerce destination (Taobao Marketplace); the China third-party platform for brands and retailers (Tmall), and the sales and marketing platform for flash sales (Juhuasuan). Wholesale commerce in China operated by the Company includes the China domestic wholesale marketplace (1688.com) and the wholesale marketplace for global trade (Alibaba.com).

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 129.35.

The projected lower bound is: 122.08.

The projected closing price is: 125.71.

ALIBABA GRP ADR closed up 1.240 at 125.370. Volume was 3% above average (neutral) and Bollinger Bands were 5% narrower than normal.

Open         High          Low           Close        Volume
124.020    125.560    123.870    125.370    10,030,644

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period      50-period      200-period
Close:                      123.79             115.97            103.29
Volatility:               17                     20                   27
Volume:                  10,248,515    10,528,553    12,187,224

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 21.4% 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.K at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BABA.K and have had this outlook for the last 53 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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 80.1503. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 12 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 67.85. 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 8 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 114.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 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 7 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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