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 leading company in its industry that has recently been beaten down due to bad news, mainly related to politics in China. However, its fundamentals remain solid. Its current price is a tremendous value based on their fundamentals.
- EVENT: Alibaba is expected to report its next Quarterly Earnings on August 20, 2021. It has recorded better than expected earnings in 7 of the last 8 quarterly releases.
- Alibaba has been a huge beneficiary of consumers in China and around the world who were restricted from shopping in brick and mortar stores during the lockdowns prompted by the Coronavirus pandemic. Its revenues have grown nearly 35% annually the last 5 years. Alibaba is wisely investing that capital into new technologies such as cloud computing. This is what Amazon did. Cloud computing currently represents 8% of Alibaba’s operating profits but is growing every year. While this can be expensive at first it pays off due to the high margins of the cloud computing business.
- From a regulatory standpoint the worst seems to be behind Alibaba as it recently paid a large fine to the Chinese government to settle antitrust accusations in China.
- NEWS: July 14, 2021- The Wall St. Journal reported that Alibaba and Tencent are exploring opening up their respective platforms to each other’s customers. This is significant not only for the increased revenue, but also the implicit authorization by the Chinese government for two technology powerhouses to work together.
- PRICE: Alibaba stock may rise 50% before reaching its all-time high ($319: October 2020).
(#ALIBABA), July 15, 2021
Current Price: 213.00
|
ALIBABA |
Weekly |
|
Trend direction |
|
|
258.00 |
|
|
243.00 |
|
|
228.00 |
|
|
203.00 |
|
|
193.00 |
|
|
183.00 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
ALIBABA |
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|
Pivot Points |
||||||
|
Profit or loss in $ |
45,000.00 |
30,000.00 |
15,000.00 |
-10,000.00 |
-20,000.00 |
-30,000.00 |
|
Profit or loss in €** |
38,013.18 |
25,342.12 |
12,671.06 |
-8,447.37 |
-16,894.75 |
-25,342.12 |
|
Profit or loss in £** |
32,556.79 |
21,704.53 |
10,852.26 |
-7,234.84 |
-14,469.69 |
-21,704.53 |
|
Profit or loss in C$** |
56,362.95 |
37,575.30 |
18,787.65 |
-12,525.10 |
-25,050.20 |
-37,575.30 |
* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 09:06 (GMT+1) 15/07/2020
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