ALIBABA weekly uptrend opportunity based On 1.00 Lot Calculation:
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Alibaba is the world’s second largest online retailer and the largest in China.
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Alibaba is a fallen angel. The stock has dropped due to concerns about possible SEC regulations for foreign companies listed on American exchanges. However, these concerns have now been addressed by the Chinese government. Alibaba’s fundamentals remain solid. Its current price represents a tremendous value based on its fundamentals.
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NEWS- STOCK BUYBACK: Alibaba increased the size of its Share Repurchase Program to $25 billion on March 22, 2022, “In a sign of confidence about the Company’s continued growth in the future.” according to Alibaba’s website.
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FUNDAMENTAL ANALYSIS: Alibaba trades at a discount relative to its peers in the e-commerce sector. Alibaba’s forward Price-to-Earnings Ratio (P/E) is 14.43, The industry median is 32.31. Amazon’s is 66.23. Alibaba’s Sales are growing at 40.72%. The industry median is 27.65%. Alibaba’s closest competitor in China, JD.com is only growing at 27.59%. A deeply discounted P/E ratio coupled with above average Sales Growth means the stock is deeply undervalued.
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NEWS: On April 1st, 2022, Chinese authorities announced they were preparing to give U.S. regulators full access to auditing reports of the majority of the 200 plus Chinese companies listed on American stock exchanges. This action lifts a tremendous weight off of companies like Alibaba which were facing delisting from American exchanges if they failed to comply with U.S. accounting and auditing standards.
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WALL ST. ANALYSIS: Alibaba currently enjoys 50 Buy ratings, 6 Hold Ratings, and 2 Sell Ratings. The consensus 12-month target is $165.58, according to Bloomberg. Nomura rated the stock a Buy on April 11th, 2022 with a price target of $145. Goldman Sachs rated the stock a Buy on April 10th, 2022 with a price target of $185.
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TECHNICAL ANALYSIS: Alibaba’s current price would need to rise over 219% to reach its all-time high ($319.92: October 2020).
(#ALIBABA), April 12, 2022
Current Price: 100.00
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Alibaba |
Weekly |
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Trend direction |
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145.00 |
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|
130.00 |
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|
115.00 |
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|
88.00 |
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|
76.00 |
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64.00 |
Example of calculation base on weekly trend direction for 1.00 Lot1
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Alibaba |
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Pivot Points |
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Profit or loss in $ |
45,000.00 |
30,000.00 |
15,000.00 |
-12,000.00 |
-24,000.00 |
-36,000.00 |
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Profit or loss in €2 |
41,435.70 |
27,623.80 |
13,811.90 |
-11,049.52 |
-22,099.04 |
-33,148.56 |
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Profit or loss in £2 |
34,593.56 |
23,062.38 |
11,531.19 |
-9,224.95 |
-18,449.90 |
-27,674.85 |
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Profit or loss in C$2 |
56,935.80 |
37,957.20 |
18,978.60 |
-15,182.88 |
-30,365.76 |
-45,548.64 |
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1.00 lot is equivalent of 1000 units
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Calculations for exchange rate used as of 09:30 (GMT+1) 12/04/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
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You may wish to consider closing your position in profit, even if it is lower than suggested one.
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Trailing stop technique can protect the profit – Ask your Client Manager for more details.