Alibaba
$BABA Alibaba building this potentially bullish Inverse H&S..Alibaba has been basing in the form of a bottoming reverse head & Shoulders formation. if this plays out as per the textbook we have a target in the region of $216. Keep a close eye and watch for a close above the neckline to confirm the pattern.
AliBaba Poised to loose more ground. BABAWe are still zigzaging on this one. Momentum in the negative, crashing through resistances. I suppose it's only fair given the stellar impulse we have seen earlier.
We are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in purple with invalidation in red. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe!
BABA - New Year's sales should help The company's stock prices are in a steep peak. But the business and its performance are good. The latest report plunged the stock price to nearly five-year lows, which is excessive in my opinion. New Year's sales could be good, which will inspire investors and allow the stock to bounce quite well.
#BABA Alibaba peaking its head under the previous weekly lowAlibaba has peaked its head under the 2018 weekly swing low which is concerning. However on the positive, there does seem to be some degree of bullish divergence with the RSI not making a new low.. so there is potential for a bounce, but bulls will really want the weekly candle to close back above $130 to have some sort of comfort.
BABA - STOCKS - 18. OCT. 2021Welcome to our Weekly V2-Trade Setup ( BABA ) !
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4 HOUR
Alibaba group undervalued currently.
DAILY
Most investors panic selling.
WEEKLY
Overall great technical setup!
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STOCK SETUP
BUY BABA
ENTRY LEVEL @ 168.02
SL @ 151.47
TP @ Open
Max Risk: 0.5% - 1%!
(Remember to add a few pips to all levels - different Brokers!)
Leave us a comment or like to keep our content for free and alive.
Have a great week everyone!
ALAN
BABA - time for a shiftShift has come - from this moment on, BABA will start it's rise (my prognosis).
The reason for this assumption is the very positive PE ratio, which was not hurt by the price fall.
BABA seems very healthy financially, as if it was buying out own stocks during the fall.
So my guess is that those who will still the opportunity to get the stocks for 130$, will catch the last train upwards.
I personally doubt that it will really reach the 130$ already, but since there is there are still 2 days till the weekend, it may have enough time to bounce.
✅ALIBABA LOCAL LONG/PORTFOLIO ADDITION🚀
✅ALIBABA is trading in a downtrend
Following the company's falling out of favor
With the Chinese Government
And fueled further by the Coming Evergrande collapse
That will drag China down with it
Today, the stock gapped and fell even lower
On the earnings news
However, a massive support level is ahead
At around 128$ per share, and I think
This might be a great local long
With the upside limited by the falling resistance
Also, with the stock trading with 60% discount
It might be a good place to start adding BABA to your long term portfolio
As it is clear that whatever economic storm is coming
Alibaba will be the one candidate to survive it
LONG🚀
✅Like and subscribe to never miss a new idea!✅
LONG BABA:TRADE OF THE CENTURYLong baba 1@140 & double down limits at 2x130, 4x88 and 8x58.
Possible to hedge with LONG $55 baba put LEAP hedging 5-10% of ur stonk notional.
Also possible to participate in the downside between 140-130 and 130-90 and 90 to 60. these key bear 'breakout' levels smart buyers may want to structure option exposure around and between to take alpha out on the downside.
this is trade of the century - trade time is 12-36m with target of 300-500 depending on ur duration preference.
why? baba is at MACRO supp level at 130-140. bears will NOT take this lvl.
institutional flows are BIG long. goldman, ray dalio, charlie munger, hsbc have ALL doubled down and MAX longed this baba dip (they have opertaions in china & relationship with government hence baba risk is over played.
short interest remains low at 2%
BABA - It's getting hotterBABA has broken through the major resistance level of 144$/sh, and it seems that next week it might touch the next resistance level at 136$/sh.
There should be quite many people who entered the market at the level of 160-170$/sh, while surely there also enough people who entered the stock at much higher levels, and now might be panicking.
The lower it gets, the better it is eventually, because BABA has no debts and with nearly 1B of users, as one of major representatives of Chinese market, cannot just go bankrupt.
Considering mentioned above, those who entered the stock too high, will need to compensate their losses, by acquiring even more stocks, to balance the average purchase price.
The major question now is, at which level shall we expect to enter the compensating portion - at 140$ or will it eventually get as low as 136$ or even 125$.
Please share your ideas in comments.
Alibaba - traders losing patience in a tough marketIn an environment where companies like Nvidia and Microsoft are doing everything right, Alibaba (BABA) seems to be headed in the opposite direction. Granted, the investment cases are vastly different, but when you’re hot you’re hot and when you’re not the negative news is heard far more frequently.
When trading it often pays to follow the flow of capital, and in this case, momentum seems to be the best strategy. Buying strong, selling weak can be beneficial to balance the odds in one’s favour.
BABA is in this camp where bad news has followed the trend lower. Given the slowdown in China’s retail sales and consumption data it's perhaps not a huge surprise that Q2 22 total revenue missed consensus expectations by around 3%. Granted, total revenues did grow 29% YoY but expectations had already been lowered into this earnings report, so the bar to beat was quite low.
In this market, investors are drawn to companies that are consistently beating expectations. BABA isn’t one of them…at least at this stage.
CMR (Customer management revenue) and commission revenue growth of 3% missed consensus, but this was largely a result of soft gross merchandise volume (GMV), which of course is linked to China’s macro backdrop and economic trends. If the share price is going to reverse and trend higher, we need to see signs of consumption picking up. At this stage, the view is we see CMR growing a modest 4-5% in 2H22.
With all these factors at play, perhaps the most pertinent point was that BABA revised its FY2022 revenue guidance to +20-23% YoY, which implies sales will be between Rmb860b-882b - well below consensus expectations of Rmb910.
So, while there were aspects in the numbers to like, on the whole, this was a very disappointing result and the market dumped the stock hard, closing -11.1% - the biggest 1 day fall this year and the second-biggest decline since listing.
Volume was also large, with 61.57m shares traded, over three times the 15-day average. It feels likely that in the session ahead we should see another day of solid volumes, and generally speaking, if I was going to buy this pullback with any real belief, I’d like a couple of days of falling volumes to know the liquidation is done.
Technically, there is not much to inspire the bulls with BABA trading through the 50-day MA and into $141.89, before finding support ahead of the October lows of $138.43. If we see a closing lower low and I’d expect short selling activity to pick up with the stock targeting $118.
BABA is fundamentally cheap
Fundamentally we could argue that even after this downgrade that BABA is trading at a compelling valuation – at 2.29x price to 2022 sales, or 13.9x 2022 earnings one can understand why 55/60 analysts who cover BABA have a ‘buy’ rating on the stock – most would argue this valuation is not representative of the value in its cloud and international business.
BABA’s core commerce business does account for half of the valuation though, and as mentioned, if the stock is going to turn around and head to $228 (the consensus 12-month price target) we’re going to need to see the macro picture in China turn around, consumption to kick up and some of the huge investments made by BABA start to feed into the bottom line.
What will traders potentially do?
For now, we may say this is fundamentally cheap, but with the stock likely in the doghouse in the near term, until we see evidence of a turnaround the trading capital will likely sell rallies into $161.13 (to close the gap) or go outright short on a closing break of $138.43.
BABA - 2nd big fall of the year 2021So it did collapse around 25%, as soon as Earnings were pre-published.
It has nearly reached its earlier minimum of the year and currently stopped at $144/sh.
Although I'm not seeing any clear technical indicators, showing a possible further decline in stock price, this might not yet be the end of fall.
Bad news about Earnings results may have not yet revealed themselves, so we will keep watching.