Sep 14, 2020, 10:50:44 AM
Alibaba Group Holding Ltd. (BABA/NYSE): general review
Current trend
Alibaba Group shares are down from a 52-week high of September 2, losing more than 9% in value. Since the beginning of this year, the issuer quotes have increased by 28%. The company previously reported for 2021 fiscal Q1, beating The Wall Street's expectations. Revenue rose by 30% (YoY) to USD 21.8 billion; earnings per share increased by 15% (YoY) to USD 2.10.
During the previous week the stock of Alibaba Group went down by 3.85%. S&P 500 dropped by 3.30% within the same period.
Support and resistance
The issuer went down after a protracted rally. #BABA quotes updated local lows. Currently company's quotes are testing the "mirror" support level of 267.00. The level of 284.00 is the closest resistance. The instrument has the potential to further correction.
Indicators do not give clear signals: the price crossed MA (50); the MACD histogram has begun to decline. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors in the industry, we can say that #BABA shares are neutral.
Resistance levels: 284.00, 299.00.
Support levels: 267.00, 248.00, 240.00.
Trading tips
If the price consolidates below the support level of 267.00, #BABA is expected to continue correction. Potential profits should be locked in by orders at 250.00, 235.00 and 220.00. Stop-loss – 284.00.
If the price consolidates above 284.00, one can consider buying the company's shares. The movement potential is aimed in the area of 315.00–330.00. Stop-loss – 267.00.
Implementation time: 3 days.
Scenario
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Timeframe
Intraday
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Recommendation
SELL STOP
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Entry Point
267.00
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Take Profit
250.00, 235.00, 220.00
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Stop Loss
272.65, 284.00
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Key Levels
240.00, 248.00, 267.00, 284.00, 299.00
Alternative scenario
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Timeframe
Intraday
-
Recommendation
BUY STOP
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Entry Point
284.10
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Take Profit
315.00, 330.00
-
Stop Loss
267.00
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Key Levels
240.00, 248.00, 267.00, 284.00, 299.00
