Alibaba Group Holding Ltd (NYSE:BABA) HEFFX Highlights

Alibaba Group Holding Ltd (NYSE:BABA) HEFFX Highlights

Alibaba Group Holding Ltd (NYSE:BABA) HEFFX Highlights

Last week, Alibaba wowed the investment community when it forecast sales growth that implies it could earn $34.3 billion in revenue for its fiscal year, topping the $31.42 billion analysts were expecting. During the company’s investor meeting, Chief Financial Officer Maggie Wu said with the target it is on track to have the largest rise in sales, noting that the revenue jump of 56% last year included revenue from Lazada, the South East Asian ecommerce company. Without that, sales were up in the 44% to 45% range, she said, according to media reports.

Chinese e-commerce giant Alibaba Group Holding Ltd (BABA.N) on Monday said it is launching new sales channels in Singapore, Malaysia, Hong Kong and Taiwan as China’s deep-pocketed e-commerce firms vie for new users in the region.

The new service, Tmall World, will allow overseas Chinese users to buy goods from Alibaba’s Tmall brand-to-consumer retail site, the company said in a statement.

“Alibaba will provide end-to-end solutions including logistics, payment, and localization support catering to each local market’s needs,” the statement said.

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 118.20.

The projected upper bound is: 147.58.

The projected lower bound is: 131.79.

The projected closing price is: 139.68.

ALIBABA GRP ADR closed down -0.360 at 139.080. Volume was 183% above average (trending) and Bollinger Bands were 184% wider than normal.

Open        High          Low           Close          Volume
139.170    142.200    136.050    139.080    32,177,600

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

Moving Averages: 10-period      50-period       200-period
Close:                      129.10             118.54             104.25
Volatility:               74                     39                    31
Volume:                  23,281,494    13,438,039    12,780,938

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 33.4% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume into BABA.K (mildly bullish). Our trend forecasting oscillators are currently bullish on BABA.K and have had this outlook for the last 58 periods. Our momentum oscillator is currently indicating that BABA.K is currently in an overbought condition.

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 71.8795. 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 76.35. 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 sell 13 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 140.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 13 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 2 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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