Alibaba Group Holding Ltd. (BABA/NYSE): general analysis
Alibaba Group Holding Ltd. (BABA/NYSE): general analysis
12 February 2019, 13:17
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 172.00 |
| Take Profit | 180.00, 188.00, 195.00 |
| Stop Loss | 169.35, 164.00 |
| Key Levels | 150.00, 156.00, 164.00, 172.00, 182.00, 188.00 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 163.90 |
| Take Profit | 150.00, 144.00 |
| Stop Loss | 172.00 |
| Key Levels | 150.00, 156.00, 164.00, 172.00, 182.00, 188.00 |
Current trend
Alibaba Group shares are trading at a discount of 2.6% to a 5-month high of 5 February. Since the December 52-week low, the price has strengthened by 28.8%. At the end of January, a quarterly report was published, reflecting growth in earnings per share of up to $1.77, which exceeded the Wall Street expectations by $1.67. Revenue of $17 billion was below market expectations, while growth was 41% against the last year values, continuing to slow down from 65% and 76% in the previous two quarters.
During the last week, the Alibaba Group rose 0.45% against the decrease of the S&P 500 index by 0.55%.
Support and resistance
The dynamic is positive. Currently, the issuer is consolidating near annual highs. #BABA quotes test local support and resistance levels at 164.00 and 172.00. There is potential for further recovery. The signals of the indicators are ambiguous: the price has fixed above the MA (50) and MA (200); MACD histogram began to decline. It is better to open the positions from the key levels.
A comparative analysis of the multipliers of the company and the competing companies in the industry indicates that #BABA is overestimated.
Resistance levels: 172.00, 182.00, 188.00.
Support levels: 164.00, 156.00, 150.00.
Trading tips
Long positions can be opened after the price fixes above the level of 172.00. The closing of the profitable positions is possible at the levels of 180.00, 188.00 and 195.00. Stop loss is 164.00.
Short positions can be opened after the price is set below the level of 164.00 with the targets at 150.00–144.00. Stop loss is 172.00.
Implementation period: 3 days.
Alibaba Group shares are trading at a discount of 2.6% to a 5-month high of 5 February. Since the December 52-week low, the price has strengthened by 28.8%. At the end of January, a quarterly report was published, reflecting growth in earnings per share of up to $1.77, which exceeded the Wall Street expectations by $1.67. Revenue of $17 billion was below market expectations, while growth was 41% against the last year values, continuing to slow down from 65% and 76% in the previous two quarters.
During the last week, the Alibaba Group rose 0.45% against the decrease of the S&P 500 index by 0.55%.
Support and resistance
The dynamic is positive. Currently, the issuer is consolidating near annual highs. #BABA quotes test local support and resistance levels at 164.00 and 172.00. There is potential for further recovery. The signals of the indicators are ambiguous: the price has fixed above the MA (50) and MA (200); MACD histogram began to decline. It is better to open the positions from the key levels.
A comparative analysis of the multipliers of the company and the competing companies in the industry indicates that #BABA is overestimated.
Resistance levels: 172.00, 182.00, 188.00.
Support levels: 164.00, 156.00, 150.00.
Trading tips
Long positions can be opened after the price fixes above the level of 172.00. The closing of the profitable positions is possible at the levels of 180.00, 188.00 and 195.00. Stop loss is 164.00.
Short positions can be opened after the price is set below the level of 164.00 with the targets at 150.00–144.00. Stop loss is 172.00.
Implementation period: 3 days.
Post a Comment