Alibaba Group Holding Ltd (NYSE:BABA) HEFFX Highlights

Alibaba Group Holding Ltd (NYSE:BABA) HEFFX Highlights

Alibaba Group Holding Ltd (NYSE:BABA) HEFFX Highlights

  • After conquering grocery deliveries, Alibaba Group is setting its sights on a new part of China’s $4-trillion retail sector: Department stores.
  • The e-commerce giant, which is also venturing into cloud computing and entertainment, is increasingly looking at traditional brick-and-mortar businesses, Chairman Jack Ma, Vice- Chairman Joseph Tsai and Chief Executive Officer Daniel Zhang said in interviews with Bloomberg News on the company’s 18th anniversary.
  • Alibaba, started in Ma’s apartment in 1999, is worth $458 billion today.
  • The executives, speaking less than a month after Amazon.com closed its $13.7 billion acquisition of Whole Foods Market, discussed Alibaba’s strategy for dealing with competition, its vision on data and challenges the company will face.
  • Ma said Alibaba will need to embrace a different mindset given its current size, and move away from its asset-light approach to grab a bigger share of global trade.

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.

The projected upper bound is: 184.68.

The projected lower bound is: 170.10.

The projected closing price is: 177.39.

ALIBABA GRP ADR closed down -0.400 at 176.700. Volume was 41% above average (neutral) and Bollinger Bands were 26% narrower than normal.

Open          High            Low            Close          Volume
177.900      179.750      176.700      176.700     26,567,550

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

Moving Averages: 10-period          50-period       200-period
Close:                       173.07                160.82            122.68
Volatility:                26                       29                    31
Volume:                   17,900,672      17,795,666     13,817,449

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 44.0% above its 200-period moving average and is in an upward trend. Volatility is low 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 125 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 79.7315. This is not an overbought or oversold reading. The last signal was a sell 0 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 64.98. 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 126.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 14 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 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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