Alibaba Group Holding Limited (NYSE: BABA) Stock with a 20% discount, a rare opportunity for investors!
Alibaba (NYSE: BABA) shares rose 1.68% to $ 194.48 on Tuesday. The company is notably the Chinese leader in electronic commerce and the country’s main cloud computing provider. Alibaba is also in the parcel delivery sector. Currently, e-commerce is a rapidly growing market in China. Consumers across the country have embraced online shopping.
Alibaba shares trade at 20% discount
Recently, Alibaba’s stock was put under pressure amid the coronavirus crisis. The virus, which started in China, has disrupted the economic and operational environment for businesses. The coronavirus triggered a panic sale in the company’s stock, including Alibaba. At the close on Tuesday, Alibaba stock was trading at around 20% off its 52-week high of $ 231.
Overall, Alibaba is one of China’s leading technology companies. As a result, a 20% discount on the company’s stock represents a rare opportunity for bargain hunters. Alibaba shares generated a 55% return for investors in 2019.
China returns to work after COVID-19 disruption
At present, China has mainly mastered the coronavirus epidemic. Normality is slowly returning to the country, which relieves pressure from businesses. Likewise, the return to normal bodes well for the Alibaba title. The company derives most of its revenues from China. As a result, economic weakness in China could result in the company’s financial results.
China’s return to normal should boost demand for advertising, which is a major source of revenue for Alibaba. Companies have cut their marketing budgets due to the additional costs associated with the COVID-19 epidemic.
Alibaba doubles its parcel delivery industry in China
Alibaba is in talks to invest about $ 1.0 billion for a stake of up to 15% in the Chinese courier company Yunda, according to Reuters. In particular, the company has already invested in several major Chinese delivery companies, including ZTO Express. Therefore, an investment in Yunda would allow Alibaba to increase its exposure to the burgeoning courier industry in China. The Chinese courier market grew 23% in 2019 to around $ 105 billion.
Participating in the burgeoning courier service market in China is just one benefit of investing in courier companies. In addition, Alibaba will have access to the infrastructure to speed up the delivery of packages to e-commerce customers.
So far, the recent sale has left Alibaba’s share price about 2.0% lower than it was when the company led the investment in ZTO Express in May 2018.
Overall, the price bias is: downward.
Note: this graph shows an extraordinary downward price action.
Furthermore, prices are vulnerable to a correction around 201.62.
The projected upper limit is: 203.78.
The projected lower bound is: 169.95.
The projected closing price is: 186.87.
A black body has occurred (because prices have closed lower than they have opened).
In the last 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. In the last 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.
Momentum is a general term used to describe the speed at which prices move over a period of time. Generally, momentum changes tend to cause price changes. This expert shows the current values of four popular momentum indicators.
One method of interpreting the stochastic oscillator is to search for overbought zones (greater than 80) and oversold zones (less than 20). The stochastic oscillator is 57.1733. It is not an overbought or oversold read. The last signal was a sale 1 period (s) ago.
Relative Strength Index (RSI)
The RSI shows the overbought (above 70) and oversold (below 30) zones. The current value of the RSI is 44.80. It is not a top or bottom area. A buy or sell signal is generated when the RSI leaves an overbought / oversold area. The last signal was a sale 53 period (s) ago.
Product Channel Index (CCI)
The ICC shows the overbought (greater than 100) and oversold (less than -100) zones. The current CCI value is 32. It is not a top or bottom area. The last signal was a sale 0 period (s) ago.
The moving average convergence / divergence indicator (MACD) emits signals when it crosses its 9-period signal line. The last signal was a purchase 4 period (s) ago.
Rex Takasugi – TD Profile
ALIBABA GRP ADR closed down from -6.920 to 187.560. The volume was 22% below average (neutral) and the Bollinger bands were 36% wider than normal.
Open High Low Close Volume___
189.500 192.810 185.050 187.560 3,260,576
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 187.01 204.76 188.23
Volatility: 53 55 41
Volume: 4,147,046 4,308,040 3,593,119
Short term traders should pay more attention to buy / sell arrows while intermediate / long term traders should put more emphasis on the up or down trend reflected in the lower ribbon.
ALIBABA GRP ADR is currently 0.4% below its 200-period moving average and is trending downward. The volatility is high compared to the average volatility of the last 10 periods. Our volume indicators reflect the incoming and outgoing volume of BABA.N at a relatively equal (neutral) rate. Our trend forecast oscillators are currently bearish on BABA.N and have had this prospect for the past 46 periods.
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