Alibaba Group Holding Ltd (NYSE:BABA) HEFFX Highlights

Alibaba Group Holding Ltd (NYSE:BABA) HEFFX Highlights

Alibaba Group Holding Ltd (NYSE:BABA) HEFFX Highlights

  • Jack Ma, the man who turned Alibaba into China’s dominant e-commerce platform, now has his sights set on global domination.
  • Over the past year, Ma has spent more than 800 hours flying to dozens of countries, meeting business leaders and head of states to introduce his grand vision: small businesses from all corners of the world trading freely and securely on Alibaba’s platform. His goals are equally ambitious: Ma wants Alibaba to hit $1 trillion in gross merchandise value by 2020. By 2036, the company sees itself serving two billion customers, effectively becoming the world’s fifth largest economy, with sales eclipsed only by the GDP of the U.S., China, Japan and the EU.
  • Alibaba is set to launch its voice-activated personal assistant next week, the latest Chinese tech to follow the path pioneered by Amazon’s Echo.
  • The Chinese ecommerce group, which has tentacles into digital entertainment, payments and cloud, said it would launch the devices as early as next week. The news was first reported in The Information.
  • Alibaba said it will invest $1 billion into Lazada to increase its share in the e-commerce player from 51 percent to 83 percent.
  • This will bring Alibaba’s total investments into Lazada to over $2 billion.
  • Alibaba said it will buy stakes of certain Lazada shareholders at an implied valuation of $3.15 billion.

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 moving.

Intermediate term: Prices are trending.

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

By the way, prices are vulnerable to a correction towards 124.97.

The projected upper bound is: 149.98.

The projected lower bound is: 132.94.

The projected closing price is: 141.46.

ALIBABA GRP ADR closed up 0.090 at 140.900. Volume was 11% below average (neutral) and Bollinger Bands were 103% wider than normal.

Open          High            Low             Close          Volume
141.030     142.380      139.920      140.900     12,276,690

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

Moving Averages: 10-period          50-period       200-period
Close:                       141.63                126.98             107.12
Volatility:                34                       41                     31
Volume:                   19,946,998      17,756,628      13,223,256

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 31.5% 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 72 periods.

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 48.3134. 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 62.41. 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 29. This is not a topping or bottoming area. The last signal was a sell 12 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.

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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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