Its just a pull back from highs, no news. $190 to $180 is nothing, keep in mind this was $170 just a few weeks ago, so this is within the normal trading range.
Thinking about getting into this before earnings. Of course that uncertain feeling is there but the fundamentals look so good compared to the rest of the sector.
BABA reported earnings and missed, so the stock took a hit. The whole market went down though the last couple days, so I wouldn't read too far into it. The current 50MA at about $183 looks like it should be the next level of support if it continues to drop heading into the new week. Alibaba (BABA) Misses Q3 EPS by 4c, Revenue Beats Source: https://www.streetinsider.com/Earni...ses+Q3+EPS+by+4c,+Revenue+Beats/13750124.html
Bloomberg article, er I mean "piece", about the competition between JD and Alibaba. https://www.bloomberg.com/news/arti...ibaba-top-brands-fight-china-e-commerce-giant Some excerpts: It was looking like a banner year for business in China. The U.S. clothing company was expecting a 20 percent jump in online sales on Alibaba's Tmall, thanks to the e-commerce giant's massive reach. But executives soon learned that what Alibaba gives, it can also take away. The company refused to sign an exclusive contract with Alibaba, and instead participated in a big sale promotion with its archrival, JD.com Inc. Tmall punished them by taking steps to cut traffic to their storefront, two executives told The Associated Press. They said advertising banners vanished from prominent spots in Tmall sales showrooms, the company was blocked from special sales and products stopped appearing in top search results. The well-known American brand saw its Tmall sales plummet 10 to 20 percent for the year. ... The competition between Alibaba and JD.com is so infamous in China — and so dirty — it's been dubbed the "great cat-and-dog war," after Tmall's black-cat mascot and JD.com's white dog. Tmall and JD.com have different business models but they are increasingly pushing onto each other's turf. Alibaba's online marketplaces connect buyers and sellers. Alibaba earns money from advertising, as well as commissions and fees. JD.com runs a similar marketplace but, like Amazon, also buys products from brands, then sells and distributes the merchandise itself. Alibaba has taken aim at JD.com's long-standing dominance in electronics, while JD.com hopes to cut into Tmall's core apparel category. Both have expanded into groceries and poured hundreds of millions of dollars into acquisitions to extend their reach into brick-and-mortar businesses. The result is an escalating turf fight that carries a chilling message for brands: Either you're with us or against us. The Chinese have a name for this unwritten rule, "er xuan yi," choose one of two. "'Choose one of two' is a tacit understanding that has been reached by everyone, but you do not say it directly," said Zhuo Saijun, who until 2015 was a general manager of e-commerce research at Analysys Ltd., a Beijing-based big data consultancy. "This is certainly a problem for the development of retail sales channels. It is a business ethics problem, and this is how monopolies develop." Some policymakers have raised concerns about monopolistic tendencies in Chinese e-commerce and called for more effective regulation and enforcement.
BABA has a solid trading range, previous $170 bounces on that chart, I guess it works until it doesn't!
This looks very attractive here. I'll probably be jumping in on Monday. My $2-box by 3-box-reversal point & figure objective is $356.
I don't know how many times I`ve regretted missing the initial move on BABA. Back when I posted this in August 2016 the stock was beginning its breakout phase. The stock held $79.46 - $81.07 into the initial breakout leg, traded up to $98 and change, re-tested and held $86 - $88.68 before breaking to new all-time highs. In fact, the low of the retracement into the previous high was $86.00. This is not to toot my own horn. But to show how spotting macro trends, more often than not, pay off. The market is an efficient pricing mechanism but it cannot differentiate larger from shorter trends; therein lies the opportunity. Right now, the stock trades off its weekly regression line to the dot. That means BABA will need to rally up to $220 to keep the momentum going into next year. $194.10 needs to hold into year end to support the possibility of higher prices in 2019 and/or 2020 but in a slower ascent. A break below this level would likely imply further consideration between $210 and $185. I would get concerned if by the end of the first semester 2019 the stock cannot hold above $186.06. If that happens, I would wait until the stocks reclaims $198 to get back in. By then, the stock will be trading a whole new cycle that needs re-evaluation. BABA is still a solid long term story. QUOTE="bigbull, post: 20192, member: 817"]Reports tomorrow before the bell (8/11/16) Another great, diversified franchise that should be worth more than what it sells for. Payments, cloud and mobile are BABAs most prized possessions that should drive growth. If AMZN and MELI earnings serve as any guide, BABA should report a good quarter led by strong growth in mobile. $79.46 - $81.07 absolutely need to hold if bulls are to overcome overhead resistance priced between $86 - $88.68. Only a trade below $75 - $76 jeopardizes the rally at hand. If $89 is taken out to the upside, $95 follows. If $75 is taken out to the downside, $71 follows. Otherwise trade the range between $75 - $89.[/QUOTE]
Strong buyers response on yesterday's dip below $200. Waiting to see if the most break of the high is manifested in similar fashion as in NKE were a consolidation led to the breakout. If there are similar trends at play then that $220 level should be reached into year-end, early next year.
Went long Tuesday, 6/19/2018, at $203.995 on the Back Up to the Creek. Wednesday the price closed at 206.23. The $2-box by 3-box-reversal point & figure objective is $356.
Consolidating at the high end of its trading range. The $220 price point by year-end now seems like a far-cry. $189.72 is the pivot between the lower range -- $179.73 to $186.06 and the higher range -- $192 to $210. I would trade both bands until $198 is reclaimed on volume, or until the highs are taken out. [/QUOTE]
Alibaba is working on the development of what it calls “New Retail” to bridge the gap between online and offline shopping using its big data capacity.
