Alibaba Group Holding Ltd. (BABA/NYSE): general review
09 January 2019, 12:21
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 148.00 |
| Take Profit | 156.00, 164.00, 170.00 |
| Stop Loss | 145.35, 140.00 |
| Key Levels | 130.00, 140.00, 148.00, 156.00, 164.00 |
Current trend
Shares of Alibaba Group have lost 13% from the December three-month high. On January 3, the emitter's quotes reached a 52-week low. In early February, the Alibaba Group will report for Q3 of fiscal 2019. The company expects a 1% (YoY) increase in earnings per share to USD 1.64 with 35% (YoY) increase in revenue to USD 17.3 billion.
During the previous week, the stock of Alibaba Group grew by 7.09%. S&P500 index went up by 2.70% during the same period.
Support and resistance
The company's shares began to recover after a protracted fall. Yesterday, #BABA quotes growth exceeded 2.5%. The emitter has updated local maxima. Currently, the key trading range is 140.00-148.00. The instrument has the potential to further correction.
MACD histogram is in the positive zone and continues to grow, which shows the strength of the buyers. Positions are better to be opened in line with the current trend.
Comparing company's multiplier with its competitors in the industry, we can say that #BABA shares are overvalued.
Support levels: 140.00, 130.00.
Resistance levels: 148.00, 156.00, 164.00.
Trading tips
If the price consolidates above the resistance level of 148.00, one should expect the company's shares to grow. Potential profits should be locked in by orders at 156.00, 164.00, and 170.00. Stop loss – 140.00.
A trailing stop is to be used for positions.
Implementation period: 3 days.
Shares of Alibaba Group have lost 13% from the December three-month high. On January 3, the emitter's quotes reached a 52-week low. In early February, the Alibaba Group will report for Q3 of fiscal 2019. The company expects a 1% (YoY) increase in earnings per share to USD 1.64 with 35% (YoY) increase in revenue to USD 17.3 billion.
During the previous week, the stock of Alibaba Group grew by 7.09%. S&P500 index went up by 2.70% during the same period.
Support and resistance
The company's shares began to recover after a protracted fall. Yesterday, #BABA quotes growth exceeded 2.5%. The emitter has updated local maxima. Currently, the key trading range is 140.00-148.00. The instrument has the potential to further correction.
MACD histogram is in the positive zone and continues to grow, which shows the strength of the buyers. Positions are better to be opened in line with the current trend.
Comparing company's multiplier with its competitors in the industry, we can say that #BABA shares are overvalued.
Support levels: 140.00, 130.00.
Resistance levels: 148.00, 156.00, 164.00.
Trading tips
If the price consolidates above the resistance level of 148.00, one should expect the company's shares to grow. Potential profits should be locked in by orders at 156.00, 164.00, and 170.00. Stop loss – 140.00.
A trailing stop is to be used for positions.
Implementation period: 3 days.
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