HEFFX Initiates Coverage on Alibaba Group Holding Ltd (NYSE:BABA)

HEFFX Initiates Coverage on Alibaba Group Holding Ltd (NYSE:BABA)


 HEFFX Initiates Coverage on Alibaba Group Holding Ltd (NYSE:BABA)

 ALIBABA GRP ADR closed down  -0.510 at 114.970.  Volume was 30% below average (neutral) and Bollinger Bands were 14% wider than normal.

Open       High      Low         Close      Volume
115.370  115.750  114.622  114.970   6,678,780

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

Moving Averages: 10-period     50-period     200-period
Close:                    112.60         106.75          98.59
Volatility:                17                 20                29
Volume:                 9,423,555     9,115,678    12,830,377

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.


ALIBABA GRP ADR is currently 16.6% above its 200-period moving average and is in an upward trend.  Volatility is relatively normal as compared to the average volatility over the last 10 periods.  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 26 periods.   Our momentum oscillator is currently indicating that BABA.K is currently in an overbought condition.

 Alibaba Group Holding Ltd (NYSE:BABA)


HEFFX Target Near Term                       $120


HEFFX Target Long Term                      $200


Current P/E Ratio (TTM)                      56.50

Market Cap (b USD)                         286.882


 HEFFX Momentum


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 89.4923.  This is an overbought reading.  However, a signal is not generated until the Oscillator crosses below 80  The last signal was a sell  8 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 70.74.  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 10 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 130.This is an overbought reading.  However, a signal isn’t generated until the indicator crosses below 100.  The last signal was a sell 5 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line.  The last signal was a buy  11 period(s) ago.

baba 3


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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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