CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

ALIBABA

Market Opportunities - 31/12/2021

31 December, 2021

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

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

UP

Resistance 3

157.00

Resistance 2

142.00

Resistance 1

132.00

Support 1

112.00

Support 2

104.00

Support 3

96.00

Example of calculation base on weekly trend direction for 1.00 Lot*

Alibaba

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

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

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Risk Warning and Disclaimer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Be Aware: You can lose all, but not more than the balance of your Trading Account. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. This material does not constitute an offer of, or solicitation for, a transaction in any financial instrument. Fortrade accepts no responsibility for any use that may be made of the information and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
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CFDs and margin FX are leveraged products that carry a high level of risk to your capital. You should only trade with money you can afford to lose. Be Aware: You can lose all, but not more than the balance of your Trading Account. You do not own, or have any rights to, the underlying assets. Past performance is no guarantee of future performance. This information is intended to be general in nature and is not financial product advice. Any advice contained on this website or provided to you by Fort Securities Australia Pty Ltd is general advice only and has been prepared without considering your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. We encourage you to obtain independent financial advice and consider our Financial Services Guide (FSG), Product Disclosure Statement (PDS) and Target Market Determination (TMD) to determine if this product is suitable for you before deciding to enter into or obtain any financial products issued by us. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Be Aware: You can lose all, but not more than the balance of your Trading Account. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. You do not own, or have any interest in, the underlying assets. Fortrade Canada Limited is an Order Execution Only broker, and does not provide investment advice or recommendation. Fortrade is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and a member of the Canadian Investor Protection Fund (CIPF). Fortrade Canada Limited is authorised to provide CFD trading services in all provinces in Canada except Quebec. Residents of Alberta province are required to be Accredited Investors to trade CFDs.
CFDs are complex and highly speculative instruments, which come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing all your invested capital. Be Aware: You can lose all, but not more than the balance of your Trading Account. 77% of retail investor accounts lose money when trading CFDs with this provider. These products may not be suitable for all clients, therefore ensure, that you understand the risks and seek independent advice. Should you proceed with investment in CFDs on virtual currencies, please note, that the values are highly volatile and may result in a significant loss for a short period of time. This material does not constitute an offer of, or solicitation for, a transaction in any financial instrument. Fortrade accepts no responsibility for any use that may be made of the information and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Trading foreign exchange and/or Contracts for Differences (CFDs) on a margin carries a high level of risk, and may not be suitable for all investors. CFDs are complex products, which are highly speculative and very risky, and investing in such products may result is losing all or most of your invested capital.