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Home / Business / Can Alibaba stock run to $ 200 on profit Beat?

Can Alibaba stock run to $ 200 on profit Beat?



Alibaba (BABA – Get Report) put together a quarter of the quarter and reported much better than expected fiscal fourth quarter. Despite that, the shares are less than 1.5% a day. What should investors do about this?

Believe it or not, shares in Alibaba actually went negative early on Wednesday's trading. This is despite earnings of $ 1.28 per share rising above expectations at 95 cents. Revenue of $ 13.93 billion hit analysts' expectations by $ 600 million and increased 51 percent the year after.

Considering that the stock fell more than 10% in the seven trading sessions that led to this huge earnings balance, one would think Alibaba's stock is a buy, buy, buy! Right?

If it was not for the recent escalating trading tension between the US and China ̵

1; where Alibaba has its headquarters – then it is very likely that this would rip on a report like this. It is even more likely when one considers the large outbreak of the Alibaba stock in the midst of it, before the trade negotiations began to intensify again.

Trading Alibaba Stock

  Daily map of the Alibaba stock.
Daily map of the Alibaba stock.

When it's a trade deal, Alibaba and other Chinese stocks are likely to see a healthy rally. Until then, the Alibaba share gains may be subdued, though other major cap technologies have grown sharply. For example, Amazon (AMZN – Get Report), Alphabet (GOOGL – Get Report) and Microsoft (MSFT – Get Report) are up and running on Wednesday, climbing 1.2%, 3.5% and 1.25% respectively. Even Alibaba peer JD.com (JD – Get Report) is up 2.75%.

On the daily chart above you can see the strong breakout we had in the Alibaba stock when it broke over $ 188 and ran to $ 195. Likewise, we can also see the collapse, where stocks quickly lost 20-day and 50 -day moving average, as well as uptrend support that had been in play since February.

The Alibaba share didn't make it down to 200-day moving average, but as you can see below on the weekly chart, it jumped perfectly off of the 50-week moving average.

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  Weekly map of Alibaba warehouse.
Weekly map of Alibaba warehouse.

On a continuing rally, let's see if the Alibaba shares can come above their 10-week moving average of $ 181.57 and its 50-day moving average of $ 182.62. Over it and $ 188 and / or the back of previous uptrend support could be on the table. On the downside, I want to see the range of $ 168 to $ 170, with $ 170.73 being the 50% Fibonacci retracement in the 52-week range.

During this week's low and BABA share, it will be an immediate test with 200-day moving averages. If it fails as support, the 38.2% retracement of $ 161.07 will be on deck.

Unfortunately, much of Alibaba's price action can be driven by war crimes, although management reduces their influence on the conference call. See $ 181.50 for $ 182.50 upside and $ 170 for downsides.


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