Alibaba Stock Price Continues to Soar. Is it too HOT to BUY?

alibaba stock chart

Alibaba stock (NYSE: BABA) is one fastest moving stocks. However, some investors are very concerned about skyrocketing stock prices is moving too fast. Their fears stem from the US China Trade deal which has been on and off again since October. More recently, it appears that China and the US have come to some kind of deal, which is more great news for Alibaba investors.  Investment banks like RBC are making Alibaba stock a top pick for 2020.  RBC’s Zack Schwartzman predicts Alibaba growing its revenue at a 27% and EBITDA at a 30%!

Investors should be aware that Alibaba stock was delisted by Nasdaq on October 2 and has yet to be approved quoted on OTC quoting by FINRA.  Currently it is quoted on NYSE as American Depository Receipt (ADR).  This could cause potential liquidation issues for investors.

Alibaba Group shares added more than 7.5% in December and are currently trading at a new 52-week high. The issuer’s quotes are supported by corporate news, including successful placement on the Hong Kong Stock Exchange at the end of November, as well as record sales results of $38.4 billion following a recent shopping event, Singles Day in China. Over the past week, Alibaba Group shares fell 1.40%. Over the same period, the S&P 500 index grew by 0.16%.

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Stock futures are signalling a strong rally today as we start the new year.  The S&P 500 posted the largest gains since 2013.  There are not any corporate earnings coming out today.  Traders are expecting the first day of 2020 to start strong rally.

Support and Resistance

The “bullish” sentiment still prevails for Alibaba stock. Shares of the company renewed local highs. At the moment, #BABA quotes are consolidating. The local support and resistance levels are 210.00 and 218.00, respectively. In the near future, technical correction of the trading instrument is not ruled out. The signals of the indicators differ: the price fixed above MA (50) and MA (200); MACD began to decline. It is better to open the positions from the key levels. A comparative analysis of the multiples of the company and competing companies in the industry indicates the neutrality of #BABA. Resistance levels: 218.00. Support levels: 210.00, 201.00, 195.00.


Alibaba Trading Ideas

Long positions may be opened after the price consolidates above the level of 218.00. The closing of the profitable positions is possible at the levels of 226.00, 234.00 and 240.00. Stop loss – 210.00. Short positions may be opened after the price consolidates below the level of 210.00 with the targets in the region of 195.00–185.00. Stop loss – 218.00.

Alibaba Stock Recommendations

Nov-22-19 Initiated Macquarie Outperform
Oct-04-19 Reiterated HSBC Securities Buy $230 → $233
Aug-05-19 Initiated Jefferies Buy
Jun-04-19 Initiated Loop Capital Buy
May-16-19 Reiterated The Benchmark Company Buy $205 → $220
May-07-19 Reiterated KeyBanc Capital Markets Overweight $210 → $240
Jan-31-19 Reiterated SunTrust Buy $180 → $200
Jan-31-19 Reiterated Stifel Buy $175 → $180
Jan-31-19 Reiterated Nomura Buy $200 → $205
Jan-31-19 Reiterated Macquarie Outperform $220 → $224
Jan-31-19 Reiterated KeyBanc Capital Mkts Overweight $200 → $210
Jan-31-19 Reiterated Citigroup Buy $208 → $211
Jan-31-19 Reiterated BofA/Merrill Buy $221 → $215
Jan-31-19 Reiterated Barclays Overweight $195 → $200
Jan-14-19 Resumed Bernstein Mkt Perform
Nov-05-18 Reiterated The Benchmark Company Buy $220 → $205
Oct-29-18 Reiterated Nomura Buy $224 → $202
Oct-23-18 Reiterated Macquarie Outperform $250 → $225
Oct-22-18 Reiterated The Benchmark Company Buy $245 → $220
Oct-15-18 Reiterated Susquehanna Positive $295 → $220

Alibaba Stock 1 Day Moving Averages

Name Value Action
Exponential Moving Average (5) 213.23 Sell
Simple Moving Average (5) 214.22 Sell
Exponential Moving Average (10) 211.74 Buy
Simple Moving Average (10) 212.65 Sell
Exponential Moving Average (20) 207.13 Buy
Simple Moving Average (20) 206.86 Buy
Exponential Moving Average (30) 202.82 Buy
Simple Moving Average (30) 201.45 Buy
Exponential Moving Average (50) 196.22 Buy
Simple Moving Average (50) 192.68 Buy
Exponential Moving Average (100) 187.15 Buy
Simple Moving Average (100) 182.30 Buy
Exponential Moving Average (200) 179.83 Buy
Simple Moving Average (200) 177.48 Buy
Ichimoku Cloud Base Line (9, 26, 52, 26) 201.02 Neutral
Volume Weighted Moving Average (20) 205.68 Buy
Hull Moving Average (9) 214.53 Sell

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