BABA - Alibaba buy zonesHello traders,
Description of the analysis:
Alibaba support zones ideal for timing long positions (gray). Trade what you understand, trade carefully and sparingly according to the business plan.
About me:
Hi, my name is Jacob Kovarik and I´m trading on stock exchange since 2008. I started with a capital of 3000 USD. My first strategy was based on OTM options. (American stock index and their ETF ). I´ve learnt on my path that professional trading is based on two main fundaments which have to complement each other, to make a bussiness attitude profitable. I´ve tried a lot of techniques and many manners how to analyze the market. From basic technical analysis to fundamental analysis of single title. My analytics gradually changed into professional attitude. I work with logical advantages of stock exchange (return of value back to average, volume , expected volatility , advantage of high stop-loss, the breakdown of time in options, statistics and cosistent thorough control of risk). At the moment, my main target is ITM on SPM index. Biggest part of my current bussiness activity comes from e mini futures (NQ, ES). I´m trader of positions. I´m from Czech republic and I take care of a private fund ($4.000.000 USD). During my career I´ve earned a lot of valuable experience, such as functionality of strategies and what is more important, control of emotions. Professional trading is, in my opinion, certain kind of mental training and if we are able to control our emotions, accomplishment will show up. I will share with you my analysis and trades on my profile. I wish to all of you successul trades.
Jacob
Alibabalong
Alibaba: Potential Correction before a Breakout 1D (Apr. 27)X FORCE GLOBAL ANALYSIS:
Alibaba has shown a strong recovery after having locally bottomed due to the Corona Virus (Covid-19). Despite being a Chinese company, the e-commerce giant has not been as severely affected by the gravity of the situation. In this analysis, we take a look at Alibaba's (BABA) technicals and fundamentals to determine the most probable scenario.
Technical analysis
- We have been rejected by the descending trend line resistance marked in the dotted blue line
- The Relative Strength Index (RSI) shows a downtrend, with the formation of lower highs
- The Moving Average Convergence Divergence (MACD) shows decreasing bullish histograms, and a potential death cross
- We are seeing a temporary trend reversal to potentially fill the gaps below
Fundamental analysis
- The Corona Virus has impacted the company as fewer people were able to produce and deliver to their customers
- While supply issues have been handled now, there are now questions about how consumer demand for e-commerce products is holding up amid a period of global economic uncertainty and continued unease about germ spread
- Despite the confusion caused by the Corona Virus (COVID-19), Alibaba continues to invest aggressively into Alibaba Cloud
- As governments aggressively digitize services, cloud demand will be stimulated, and it's likely that Alibaba will be one of the beneficiaries
What We Believe
We believe that Alibaba is a strong company to hold for the long term. Alibaba shows strong fundamentals, and aggressive investments for the future that appear prudent. However, technical analysis demonstrates that we could be seeing a small correction for the immediate term.
Trade Safe.
Alibaba Stock Pattern Suggests Uptrend is Almost OverAlibaba Group, $BABA, is a Chinese multinational company specializing in e-commerce, retail, Internet, and technology. Here is what to focus on as we're expecting the earning release on 13th February 2020.
However, Alibaba stock is climbing to a new all-time high from a breakout that makes the bulls very excited about the future. But are they right to feel optimistic? That is the question we hope to answer with the help of the Elliott Wave Principle and the chart below.
Alibaba’s weekly chart reveals the entire price structure from the 2015 bottom at $57.07. As you can see, it is a textbook five-wave impulse, labeled 1-2-3-4-5. The sub-waves of wave 3 and 5 are also visible.
The market apparently took the guideline of alternation into account, too. Wave 2 was a sharp plunge, while wave 4 moved sideways in a triangle correction. Triangles precede the final wave of the larger sequence.
If this count is correct, the current rally must be wave 5. The theory postulates that a three-wave correction in the other direction follows every impulse. For BABA stock, this means we can expect a bearish reversal once wave 5 is over around $250.
The anticipated retracement has the potential to erase the entire fifth wave. A decline back to the support area of wave 4 or even lower is very likely. $130 a share seems like a reasonable target in the next couple of years.
The risk/reward ratio doesn’t look very favorable to the bulls with the stock around $213.
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Thank you.
Stock of the Week: Alibaba Group (BABA)Local breakout after bullish behavior suggest further advance
Wyckoff Story
Upsloping price structure of HHs and HLs and decreasing supply signature from Phase A to D suggest accumulation.
Breakout in Phase D out of the local Last Point of Support (LPS) suggests a possible breakout above $210 and a Major Sign of Strength to come.
Relative strength is improving.
Trading Target:
$148 count line + (21 boxes * 3 reversal * $2 box size) =$274
Pattern Confirmation: Breakout above $210
Pattern Failure: Close below $165
Happy Trading,
Roman
Alibaba Buy Opportunity Alibaba BABA stock has triggered long with with 200EMA as a support. At the moment as long as the stock hold above the 200EMA I will be comfortable with the trade till the Target hit.
You can enter now or wait for a retracement towards 170. Personally Im long from 166 levels from initial signal.
If this has a End Of Day close below the 200EMA and break that candlestick, I would come out early.
For the moment Target is 184 to 189
Stops - 159 or close below 200EMA
Ascending Triangle Forming - Breakout In MayWatching this ascending triangle and taking a long position here. Short term PT $194.16. After it reaches the first target, granted market conditions stay the same, I expect BABA to continue on to the last ATH at $211.70 over the next few months. Will be keeping an eye on this one.
Alibaba: 2 Month TargetAlibaba for the next week or so may have some small negative correlations due to concerns over trade in China and the recent effects tariffs and political decisions had on Asian markets. That being said, it is coming in on a strong for positive correlations when looking at a 2 month time period. An expectancy of a $150 price tag should occur within January and it seems to have strong stock potential for a very long term hold.
ALIBABA.....TURNING AROUND?As you can see Alibaba moved up on Wednesday just before the support at $164.20. Mainly because of the news that Alibaba launched an Amazon Prime-like concept called 88VIP.
The day before that it was announced that Kroger would partner up with Alibaba to sell their products in China. Such partnership wouldn't be only good for Kroger it would possibly generate more traffic for Alibaba which could result in more revenue in other departments of the E-commerce company.
Most eyes will be focused on the 23rd when the earnings release is due. With the last 4 reports beating estimates I'm fairly confident this one is no exception.
In my opinion Alibaba is set to return to it's previous high's with the "oversold" 10-day RSI in the back of my mind and the recent positive developments on the fundamental side.
First target is set at around $192.30 the second target would be close to $200.
I will follow up if the targets get hit or when it breaks support.
P.S. I'm not telling you what to do always cross-reference with your own analysis. I'm not responsible for your loss.