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, its fundamentals remain solid. Its current price represents a tremendous value based on their fundamentals.
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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 13.40, The industry median is 33.82. Amazon’s is 45.52. 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: Alibaba recently dropped further after the SEC officially named it as one of the companies not in compliance with U.S. auditing requirements. However, this action will only affect the company’s status if it remains out of compliance for three consecutive years. 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. Alibaba has two more years to comply before it may be forced off of American stock exchanges. Regardless of American regulations Alibaba would still be free to trade in Hong Kong and many other locations.
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NEWS: The Chinese Government has announced, from the highest level, it would be supporting its local companies in the capital markets, encouraging its insurers to invest in the Chinese technology sector, and is engaging the United States about the audit issues mentioned above. It also added it would soon end its heavy handed regulatory stance against Chinese technology companies. This news has driven the Chinese stocks, including Alibaba, significantly higher since March 15th, 2022 and the time of this writing.
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WALL ST. ANALYSIS: The consensus 12-month target is $169.55, according to Bloomberg. Nomura rated the stock a Buy on March 15th, 2022 with a price target of $153.
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TECHNICAL ANALYSIS: Alibaba’s current price would need to rise 209% to reach its all-time high ($309.92: October 2020). The technical indicators RSI, MACD, and Stochastic all indicate Alibaba may be oversold and well positioned for a reversal.
(#ALIBABA), March 17, 2022
Current Price: 100.00
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Alibaba |
Weekly |
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Trend direction |
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169.00 |
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135.00 |
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120.00 |
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85.00 |
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75.00 |
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65.00 |
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 $ |
69,000.00 |
35,000.00 |
20,000.00 |
-15,000.00 |
-25,000.00 |
-35,000.00 |
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Profit or loss in €2 |
62,464.35 |
31,684.82 |
18,105.61 |
-13,579.21 |
-22,632.01 |
-31,684.82 |
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Profit or loss in £2 |
52,671.76 |
26,717.56 |
15,267.18 |
-11,450.38 |
-19,083.97 |
-26,717.56 |
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Profit or loss in C$2 |
87,447.84 |
44,357.60 |
25,347.20 |
-19,010.40 |
-31,684.00 |
-44,357.60 |
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1.00 lot is equivalent of 1000 units
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Calculations for exchange rate used as of 13:00 (GMT) 17/03/2022
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.