Alibaba Group Holding Ltd (NYSE:BABA) HEFFX This Weeks Summary

Alibaba Group Holding Ltd (NYSE:BABA) HEFFX This Weeks Summary

Alibaba Group Holding Ltd (NYSE:BABA) HEFFX This Weeks Summary

  • Alibaba Group’s entertainment arm Alibaba Pictures Group Limited has acquired a majority stake in Chennai-based online ticketing platform TicketNew.
  • The acquisition is expected to strengthen TicketNew’s operations and expand its services across India. It is Alibaba Pictures’s first acquisition outside China in internet ticketing industry.
  • On June 8, Chinese e-commerce giant Alibaba drew “gasps of wow” from investors as it presented forecasted sales growth of 45 to 49 percent this year, 10 percentage points ahead of analysts’ expectations.
  • And today, Chris Tung, its chief marketing officer, told an audience of advertising and media executives – not CFOs – that it sold an enormous $550 billion of merchandise in the last fiscal year, and served more than 500 million Chinese consumers alone.
  • Alibaba is selling the Chinese dream this week—in Detroit.
  • The Chinese e-commerce giant is pulling out all the stops to impress America at Gateway ’17, its biggest-ever public event in the United States, which starts Tuesday, June 20. At the two-day conference, founder Jack Ma is scheduled to take the stage for a June 21 keynote in which he’ll discuss the opportunity for US small businesses to tap into China’s growing middle-class.
  • That will follow a more intimate discussion on opening day about his personal story and entrepreneurial drive, moderated by acclaimed interviewer Charlie Rose.
  • Alibaba is using artificial intelligence (AI) to create tailor-made shopping experiences for consumers and targeted marketing for brands as it seeks to “empower people in the virtual economy”.

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 121.95.

The projected upper bound is: 149.02.

The projected lower bound is: 132.63.

The projected closing price is: 140.82.

ALIBABA GRP ADR closed up 0.730 at 140.200. Volume was 100% below average (consolidating) and Bollinger Bands were 199% wider than normal.

Open          High           Low             Close          Volume
140.200     140.200     140.200     140.200     5,757

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

Moving Averages: 10-period         50-period      200-period
Close:                       136.94              122.04            105.50
Volatility:                77                      40                    32
Volume:                   34,299,876     15,837,937     13,149,187

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 32.9% 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 64 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 59.5591. This is not an overbought or oversold reading. The last signal was a buy 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 71.76. 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 5 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 71. 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 buy 8 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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