BABA BUY/LONG NOW READY! 216.80 301.70 By End 2021!TICKER CODE: BABA
Company Name: ALIBABA GROUP HOLDINGS LTD
US Stocks Retail Trade Internet Retail
Position Proposed: BUY (Long-Term)
FOMO BUY ENTRY: 216.80 (NOW READY)
NEXT BUY ENTRY: 213.40
1st Partial Take Profit: 301.70 (End 2021-Early 2022)
2nd Partial Take Profit: 363.25 (End 2022-Early 2023)
NOTE THAT THE TIMELINE IS ONLY AN ESTIMATION
Stop Loss: 165.00
Technical Analysis
1. LARGE Rising Channel
2. Fibonacci Retracement at 0.786
3. 1st Partial Take Profit is at Fib Ext Level 1 Grey Zone (Safe Zone)
4. 2nd Partial Take Profit will be at trendline resistance level as well as level 2 of Fib Ext Blue Zone
5. Stochastic Expected to hit Stable Range then rise to overbought levels
6. the current market is a Break and currently retesting the previous resistance
7. Short-Term Timeframe (4hrs/Daily) has an impulse flagpole with a pennant (Continuation Pattern)
Babalong
$BABA Still waiting!BABA ended the week strong with heavy call volume near Friday's close. Since last time I charted BABA, it dipped into my buy zone near the fib level and bounced fast. Notice how it bounced off the Oct VWAP from last year. Also notice how the weekly high is the 21 EMA, which is telling of this swing. Without an active sequence, it will be hard to tell as of right now if this is the bottom. It wouldn't surprise me if BABA went even lower to test last year's price range between 165-190, and I would be wary of going long here still. I will continue to watch BABA, hoping that it can show strong indication that a bounce is in on a strong Fib level and bouncing off the lower VWAP. So far the monthly low continues to be 204, right at the Fib level. Below 204, we can consider it a short term correction looking for lower prices.
Best Deep-Value Large-cap Growth play - Alibaba (BABA)Macro Reasons
-China has a population of 1.3billion VS US's 0.33 Billion, about 4x more
-Rising Chinese middle class with a growing disposable income
-It is estimated that China's GDP is set to overtake the US in 5-8 years
Fundamentals Reasons
-With 56% of the e-commerce market share in China and a growing e-commerce pie, Alibaba is poised for greater growth in 5-10years
-Supported by Cainiao logistics to enable efficient e-commerce delivery and Alipay to complete its transactions/funding for their merchants, it forms Alibaba's iron triangle to capture a large market share in the e-commerce related space.
-Dominant Cloud player at 40% market share, this segment just turned profitable recently and will contribute to its growth strongly like Amazon's AWS (30% margins)
Valuation
FCF: 26Bil USD per year i.e 9.6 USD per share (2.711 Billion shares outstanding)
20X multiple(Bottom valuation) : 192 USD per share
25X multiple(Bottom valuation) : 240 USD per share
Net Cash of 20 USD per share (462bil RMB Cash - 115bil RMB Debt = 347 RMB Net Cash = 54bil USD net Cash )
Fair Value at current conditions = 212 USD per share (20X FCF) - 260 USD per share (25X FCF)
FCF 10 years later: 9.6 USD *4.04 (15% CAGR for 10 yrs) = 38.78 USD per share
20X multiple (10% discount rate - 5% perp growth): 775 USD per share +20USD net cash =795 USD per share
795/215 (Current share price 14th June 2021) = 3.70X in 10 years* i.e 14% CAGR
*Very conservative estimate of 15% CAGR FCF & terminal multiple of 20X, also assuming all FCF are re-invested in other biz and not distributed via dividends/ buybacks
Technicals
Seems like it is at its bottom after a 30% slump in its share price, touching a very strong upward sloping support line indicating the bottom is near. Incidentally, it corresponds with the bottom valuation of 212 USD per share (20X FCF + net cash).
Addressing Risks
Risks of VIE structure & CCP risk are unfounded, one can easily exchange its ADR for the equivalent HK shares at the ratio of 1ADR:8 HK shares and Alibaba is too big to fail for the CCP. The recent USD2.8 Billion fine on BABA is only 4% of revenue and not as dramatic as the 30% slump in BABA's recent valuation (from $310 to $211 per share). Also, the CCP has recently approved Ant Group’s new license to operate Chongqing Ant Consumer Finance, in which it has a 50 per cent stake. This indicates that the CCP doesn't want to tear down Alibaba but rather work towards a more successful China together.
$BABA Waiting for entryI have noticed a lot of bullish sweeps lately trying to guess the bottom here. There is a descending wedge forming on the weekly chart that has become an issue if it continues to drop under the buy zone that I have set below. My buy zone is based on the retracement level that coincides with the highs in 2018. As these sweeps kept coming in, the 2022 LEAPS caught my attention. If BABA manages to break out, it will be interesting how price will hold these levels now that it seems that big accumulation is taking part. Also important to note that ADX is getting a strong sell signal whilst orderflow shows otherwise. IV is also the lowest it has been in the last 52 weeks, so a big move to either side could take place soon.
BABA BUY/LONG NOW READY! 200.00 to 350.00 by Early-Mid 2022! TICKER CODE: BABA
Company Name: Alibaba Group Holding Limited
Industry: Consumer Cyclical | Internet Retail | China
Position Proposed: BUY
Technical Analysis
1. Falling Wedge Pattern (Potentially Completed)
2. Ranging in Channel
3. Area of Confluence with Trendline and Horizontal Support (Key Level)
4. Fibonacci Retracement at 0.786 is at key market structure
5. Fibonacci Expansion Safe Take Profit Level 1 (Grey Zone) Also the length of Flagpole
and also Channel Range (Trendline Resistance)
Buy Entry: NOW READY (200.00-220.00)
1st Partial Take Profit: 350.00 (Early-Mid 2022)
2nd Partial Take Profit: 439.50 (End 2022)
Stop Loss: 170.00
BABA 4H Technical AnalysisNYSE:BABA
Short Below 236.60 area with first price target at the support line.
This is a GAP play, but ER is right around the corner so be very careful. We are also in this this pennant/wedge and if we break above this wedge, we could see a bullish trend continuation and a possible ER Run.
BABA aka ALIBABA IdeaGday Guys...
Let's check again this pair. Kindly, refer to my previous projection 22 March 2020.
As expected, this pair moving based on previous analysis. And today am expecting positive movement of this pair.
Which is continue higher which is it's was in the minor Demand Zone. As i didn't read much with this company news, but based on the human behavior and technical analysis we can project
next move of any pair.
Let's see what happen next.. Cheers.
BABA Long + Very Bullish pre & post covid, even more so post pandemic as an increase in online businesses and sales as a result of distancing etc + Regulatory fine may create opportunity for a long term entry
- Slightly unknown consequences from stricter Chinese regulation , how will future regs impact price - Incoming Fines effect on stock price.
BABA Long channeling between the .5 and the .382. BABA really obeyed the channel on its descent and when it bounced it immediately began retracing its journey from its nadir. Hard to say what confluence of fundamental events surrounding Jack Ma and ANT IPO and Chinese regulation really did the dent in the price action, but BABA was more or less overbought on the 1hr timeframe according to the RSI in October. There is a small C&H on the 15 minute. If not that, it might be a pennant that forms from the right lip of the cup itself. Would love to see BABA achieve new highs by June so I am longing what I think might be the end of the right shoulder of what I think is a massive inverted H&S.
This is not investment advice but the idle musings of an old man.
BABA TO RETEST ATH IN COMING MONTHSBABA has broken out of the wedge pattern and has begun to accumulate.
We think BABA will break out on earnings and test the 270 price target.
We believe BABA will retest 320 by mid or late March given favorable market conditions. The following reasons include:
1) Strong Pandemic recovery
2) China is set to outgrow the United States in 5 years instead of 10 years
3) BABA is severely undervalued
4) BABA will rekindle a relationship with the Chinese gov and an ANT IPO will most likely play out
5) Big money is flowing into China as a safe haven.