Kiwis using New Zealand share platform Hatch can now buy shares in Chinese ecommerce giant Alibaba Group Holding Limited (NYSE:BABA)

Kiwis using New Zealand share platform Hatch can now buy shares in Chinese ecommerce giant Alibaba Group Holding Limited (NYSE:BABA)

Kiwis using New Zealand share platform Hatch can now buy shares in Chinese ecommerce giant Alibaba Group Holding Limited (NYSE:BABA)

Kiwis using New Zealand share platform Hatch can now buy shares in Chinese ecommerce giant Alibaba. 

Hatch is an online service owned by KiwiSaver provider Kiwi Wealth, which lets self-directed investors build themselves portfolios of shares listed on the New York and Nasdaq stock exchanges.

But while Hatch gave investors the choice of over 2700 shares, and 450 exchange-traded funds, some of the biggest names in international business like Alibaba, which Kiwis increasingly buy goods from, weren’t available.

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 154.05.

The projected upper bound is: 182.88.

The projected lower bound is: 161.81.

The projected closing price is: 172.35.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 7 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Momentum Indicators

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 87.6954. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 10 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 71.18. 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 2 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 128.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.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 21 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed up 5.130 at 171.830. Volume was 40% below average (neutral) and Bollinger Bands were 9% wider than normal.

Open High Low Close Volume___
168.560 171.940 168.000 171.830 2,679,578

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

Moving Averages: 10-period 50-period 200-period
Close: 162.47 150.90 169.53
Volatility: 41 45 43
Volume: 3,626,771 4,168,261 4,301,243

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
ALIBABA GRP ADR is currently 1.4% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into BABA.N (mildly bullish). Our trend forecasting oscillators are currently bullish on BABA.N and have had this outlook for the last 15 periods. Our momentum oscillator is currently indicating that BABA.N is currently in an overbought condition.

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