ALIBABA weekly uptrend opportunity based On 1.00 Lot Calculation:
- Alibaba is the world’s second largest online retailer and the largest in China.
- Alibaba is a fallen angel. The stock has dropped due to concerns about possible SEC regulations for foreign companies listed on American exchanges. However, its fundamentals remain solid. Its current price represents a tremendous value based on their fundamentals.
- 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 15.20, The industry median is 47.30. Amazon’s is 59.27. Alibaba’s Sales are growing at 40.72%. The industry median is 31.47%. Alibaba’s closest competitor in China, JD.com is only growing at 29.28%. A deeply discounted P/E ratio coupled with above average Sales Growth means the stock is deeply undervalued.
- EARNINGS RELEASE: Alibaba is expected to report its 3rd Quarter earnings on February 2nd. It is forecast to earn $12.69 per share and have revenue over $253 billion. Alibaba has exceeded analysts’ quarterly estimates for earnings and revenue 6 of the last 8 quarters.
- NEWS: Alibaba is one of 200 Chinese companies that may face delisting in the United States in THREE years if they do not comply with American accounting and auditing standards. This regulation has not been enacted yet, but the current price already reflects it. Even if the proposed regulation became official, Alibaba would still have three years to comply before it was forced off of American stock exchanges. Regardless of American regulations Alibaba would still be free to trade in Hong Kong and many other locations.
- TECHNICAL ANALYSIS: Alibaba’s current price would need to rise 148% to reach its all-time high ($309.92: October 2020). The technical indicators RSI, MACD, and Stochastic all indicate Alibaba is oversold and well positioned for a reversal.
(#ALIBABA), December 31, 2021
Current Price: 121.00
|
Alibaba |
Weekly |
|
Trend direction |
|
|
157.00 |
|
|
142.00 |
|
|
132.00 |
|
|
112.00 |
|
|
104.00 |
|
|
96.00 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
Alibaba |
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|
Pivot Points |
||||||
|
Profit or loss in $ |
36,000.00 |
21,000.00 |
11,000.00 |
-9,000.00 |
-17,000.00 |
-25,000.00 |
|
Profit or loss in €** |
31,793.13 |
18,545.99 |
9,714.57 |
-7,948.28 |
-15,013.42 |
-22,078.56 |
|
Profit or loss in £** |
26,674.57 |
15,560.17 |
8,150.56 |
-6,668.64 |
-12,596.32 |
-18,524.01 |
|
Profit or loss in C$** |
45,801.36 |
26,717.46 |
13,994.86 |
-11,450.34 |
-21,628.42 |
-31,806.50 |
* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 11:00 (GMT) 31/12/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more details