Alibaba Group Holding Limited (NYSE:BABA) broke all sales records this year

Alibaba Group Holding Limited (NYSE:BABA) broke all sales records this year

Chinese e-commerce leader Alibaba (NYSE:BABA) just completed its ninth annual Singles Day sales event and smashed all previous records by selling $30.8 billion worth of goods.

To put that in perspective, the five-day kickoff to the Christmas shopping season that begins on Thursday, Thanksgiving Day, and runs through the following Monday, known as Cyber Monday, generated sales of $19.6 billion. And that’s for all of retail. Alibaba’s sales figure don’t include the sales generated by other Chinese retailers, such as its biggest rival, JD (NASDAQ:JD), which sold $23 billion worth of merchandise (albeit over an 11-day period, though the bulk came on Singles Day itself).

As amazing as Alibaba’s numbers are, there are a few caveats. Retailers participating in Singles Day actually rack up sales in the days leading up to the event, but only process the orders on Nov. 11, making it more than just a one-day phenomenon. If Amazon promoted its Prime Day for days or weeks ahead of time, generating orders for it but not processing them until the day of the sale, its sales figures would be higher as well.

Also, Alibaba is more like eBay than Amazon, hosting third-party retailers rather than selling goods itself, so Singles Day and Prime Day are not quite analogous, though Amazon does also host third-party retailers and their own sales exceeded $1 billion.

Moving $30 billion worth of goods in such a short span of time is no small feat, but it may soon reach a saturation point for growth.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 166.91.

The projected lower bound is: 140.96.

The projected closing price is: 153.93.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 86.8780. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 9 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 54.86. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 25 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 119.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 12 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed down -2.120 at 154.100. Volume was 10% below average (neutral) and Bollinger Bands were 2% narrower than normal.

Open High Low Close Volume___
155.000 155.800 152.160 154.100 4,192,591

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 148.90 152.16 178.07
Volatility: 48 56 43
Volume: 4,278,101 4,823,741 4,231,937

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

ALIBABA GRP ADR is currently 13.5% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BABA.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BABA.N and have had this outlook for the last 2 periods.

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