BABA the Daily Journal sold 50% of its stake in itIf you haven`t sold on growth concerns:
Then you should know that after averaging down multiple times, Daily Journal Corp, where investor Charlie Munger served as chairman until very recently, cut its stake by roughly 50%.
My expectation is to see a double bottom in BABA this year.
BABA
Bullish on BABA"Be greedy when others are fearful"
BABA is 70% off its highs from a year and a half ago and many investors are jaded. Looking at the technicals however, I'm seeing plenty of reasons to consider BABA a great opportunity to DCA into a long position here. The relentless overhead resistance and downward momentum appear to be dissipating as sellers run out of steam. Value buyers appear to be stepping in and the charts are showing increasing support. In addition, I'm seeing bullish divergence on the daily chart and a possible signal of a shift of momentum. All these signs lead me to think BABA is preparing to turn the corner. I'm not ready to call the bottom on BABA, but I'm interested in accumulating.
Happy Trading
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ALI BABA : SELL OR BUY ??The last time that the price was around 100 $ was at the IPO (2014) and then between AUG 2016- JAN 2017
TOTALL ASSET :
IPO(2014) : 41.27 B
2016: 73.55 B
2017: 114.01 B
2020: 257.86 B
2021 :276.25 B (UNTIL Q3)
GROSS PROFIT :
IPO(2014) : 8.12 B
2016: 14.05 B
2017: 20.66 B
2020: 42.09 B
2021: Q1 + Q2 +Q3 =37.25 + Q4(9.03)(IF WE CONSIDER SAME AZ Q4 OF 2020) = 46.28 B
P/E FORWARD = 7.40 !!!
P/S =2.12 !!!
P/CASH FLOW = 0.10
P/B = 1.79
RETURN ON ASSET = 3.86%
QUICK RATIO = 1.65
DEBT / ASSET RATIO = .08
All these items show the prices are not permanent.
Alibaba Provides A Trade For Bulls.The pattern is bearish for the short term, but can be bullish down the road.
For bearish traders, the trend is your friend (until it's not) and the stock is likely to continue downwards. Aggressive traders may decide to short the stock at the upper trendline and exit the trade at the lower trendline.
Bullish traders will want to watch for a break up from the upper descending trendline, on high volume, for an entry. When a stock breaks up from a descending channel, it's a powerful reversal signal and indicates a rally is likely in the cards.
Between March 15 and March 23, Alibaba soared 70% higher, but has since dropped into a falling channel pattern on the daily chart. Within the pattern, Alibaba has made a consistent series of lower highs and lower lows, with the most recent lower low printed on March 31 at $108.71 and the most recent lower high created at the $118.22 level on Monday.
It should be noted that the current falling channel on the daily chart could form into the flag formation of a weekly bull flag pattern.
Traders and investors can watch for a break up from the falling channel on higher-than-average volume to indicate a reversal is in the cards. If the stock breaks up from the pattern, the measured move of the weekly bull flag indicates Alibaba could trade up toward the $185 level.
The decline on Tuesday was on lower-than-average volume, which indicates consolidation rather than fear. By early afternoon, only about 20 million Alibaba shares had exchanged hands, compared to the 10-day average of 48.08 million.
There's a gap below on Alibaba’s chart between $80.14 and $87.12, which may give bullish traders pause because gaps on charts are about 90% likely to fill. There are also three gaps above on Alibaba’s chart that are also likely to fill in the future, with the highest gap ranging up near the $220 level.
Alibaba has resistance above at $121.95 and $130 and support below at $110.06 and $104.44.
BABA - Waiting for trigger to BuyConsidering the weekly movements of BABA, there is great harmony in the timing of the major tops and bottoms. The time difference between the two main bottoms (Sept 2015 and Dec 2018) has been modeled and repeated to have a major bottom of March 202. In addition, considering the major tops dates of BABA, we can see that the recent bottom has been felt on the 2.00 ratio, which can be used as a signal for the prediction of the next top using the 2.618 Fibonacci ratios. Using both the mentioned time series analysis, we will have a TRZ (time target) somewhere between March and June 2024.
With the purpose of finding PRZ (price target), I have checked the Elliot Wave beside the main historical Support lines of BABA. As we can see below, the ending wave of Elliot correction waves (E) has touched one of the most important supports of BABA ($78.4 zone), which makes us have a PRZ of $350 zone, using Fibonacci expansion ratios.
However, we need to look at lower timeframes to find the trigger to buy. The main chart that I have published here is the daily version of BABA, which is moving in a downward regression channel. As long as the channel is valid, downward movements of BABA would not be finished. However, BABA has broken one of its most important Resistances (zone of $110.1), which it is expected to act as a Support in future movements. There are two potential triggers for buying BABA, which is summarized as follows:
1. The price retouches the broken support line ($78.4 zone) but does not break it down:
In this scenario, we will wait till the price breaks the downward trend line, and using the stop loss under the $78.4 zone, we can buy BABA with the mentioned PRZ and TRZ as our targets.
2. The price goes up and breaks the $132.6 zone:
In this scenario, the price will have a pullback to either $110.1 or the broken $132.6, and we can buy in the pullback with the mentioned PRZ and TRZ as our targets.
Game over... back to the rescue.China opens the books of companies to the US and important investors are ready to bet on Chinese bonds that have lost more in the last year and among these can not miss Alibaba.
LONG interest from institutional, professional and short-term investors
this is what you can see from the Miracle Viewer indicator
This time we are all betting on BABA and I also opened my positions waiting for a price increase.
BABA Long OpportunityFundamentals:
From Feb. 2016 to Nov. 2020, BABA increased over 400%. The e-commerce giant Alibaba increasingly grew until it was hindered by changing regulations and laws. Primarily Beijing’s anti-monopoly regulations and the Holding Foreign Companies Accountable Act (HFCAA).
On November 11th, 2020: Beijing announced anti-monopoly regulations, sparking a sell off due to concerns of hindered future performance
The Holding Foreign Companies Accountable Act (HFCAA) requires certain companies establish that they are not owned or controlled by the Chinese government. A company must make this certification if the Public Company Accounting Oversight Board is unable to audit specified reports because the company retained a foreign public accounting firm not subject to inspection by the board. If the board is unable to inspect the public accounting firm for three consecutive years, the corporation’s securities are banned from trading on a national exchange.
On May 20, 2020, HFCAA passed the United States Senate, passed the House on December 2nd, 2020 and finally signed into law on December 18th, 2020.
However, investors can now breathe a sigh of relief as Chinese authorities have stated they are working on ways to give U.S. regulators full access to audit reports of more than 200 companies listed in the U.S. Q2 2022. Leading to the rebound we see today.
Technicals:
Price has bounced off the December 2016 support on March 7th coinciding with BB/ADP oversold conditions
1D: Price is consolidating under resistance so further upside is expected
3D: Positive MACD as of March 22nd
3D: Bearish Divergences RSI, Stoch, CCI, ADP
1W Bearish Divergences: RSI, OBV, VWMACD, CMF, MFI, ADP
1W MACD flipped positive March 14th & PSAR Flipped positive on March 28th, 2022
1W Bullish engulfing candle indicating a reversal from the downtrend
1M Bullish Harami candle formed with large buy volume
I’m anticipating further upside to the .618 Fib at $190
👽 ALIBABA. ACCUMULATION HAS BEGUN. NOT SO FAST!Hello everyone. Today Lets take a look at Alibaba 1W Chart. What do we see?
1. First of all, currently we are in descending channel , there is no rally that changes the behaviour (from bearish to bullish ) yet. Thats a fact.
2. Recently we saw good 1w bar with big massive spread and climactic volume . What does it mean? This might be a zone where Composite Operators will be accumulating the stock. Also that doesnt mean that we will see bigger prices immiediately because of climactic action and lack of deep tests of this bar - points of fear (a lot of weak hands heared on news, from different public traders that "we have found bottom, lets buy that!")
3. Currently we are waiting for some tests of this bar. No one can tell you where we will found 100% stopping action and support of next accumulation (at which level), we just might predict that. So our first interesting zone to stop downmove is 104-105$ (0.382 fibonacci zone), second is 99-100% (0.5 fibonacci zone), third is 94-95 (0.618 zone). But we should pay more attention to lower timeframes in order to claim the end of local bearish reaction (1d, 4h timeframes). If we see shortening of thrust on 1d chart, lack of supply, big demand tales and good bullish bar with big spread on low demand volume (not climactic) after those this is a right time to try long! and start accumulating with CO in potential phase B. But accumulation might be very long! So you must not be aggessive and divide your pose into parts and have multiple POE to reduce your risk.
Thank you for reading, write your thoughts down in comment section below.
ALIBABA : WATCHafter reaching the support level below , the price bounced back upwards with a strong momentum, but in the last couple of days that perfomance slowd down and a warning appeard in a previous candle .
best move is to wait and hold the position if you're a buyer untill a red candle appears , if not wait until the price reaches the resistance level and see if itll break it or not .
Alibaba Long term AnalysisWe can see a pretty hurt #BABA stock due to all fear in the markets with China and the war, for long-term traders, this could represent a good opportunity. I try to make the chart as clear as possible, remember that this is for long-term trades, right now there´s a lot of volatility in the markets. With that scope in mind and because of volatility, the SL is extended to -34%, so manage your entry position size well. In their fundamentals, BABA is undervalued.
Remembering that resistance areas become support areas when the chart moves positive, I recommend moving your SL with these new support levels and managing your exits as comfortably as you need them to be.