To The Moon

Alibaba (BABA) reported first-quarter revenue on 10 Aug 23 (Thursday) which beat estimates as consumer sentiment improved from the same time a year earlier when there were strict pandemic-related lockdowns.

Revenue was better at 234.16 billion yuan ($32.29 billion) compared to Refinitiv estimate of 224.92 billion yuan. This latest revenue figure shows a significant improvement from flat to 3% growth in the past four quarters.

In this article I will be sharing the technical analysis that I have performing on Alibaba to determine whether this is a good time to buy.

I will be sharing my target entry price at the last Summary section.

I have shared the earnings analysis for Alibaba before, you may refer to the previous article here:

Alibaba (BABA) Earnings Release Analysis 10 Aug 2023 Pre-Market

Technical Analysis – Simple Moving Averages (SMA)

As I have shared previously for Alibaba earnings analysis, it is still in a bear trend, and I did share that the result is due to China economy slowness.

And indeed a very positive earnings result did bring Alibaba in a bull trend (As shown in the next chart).

With a significant revenue growth for this quarter and SMA is showing that Alibaba is back to its bull trend. This has indicated that it might be a good time to consider entering some positions.

Before that, let us look at other indicators.

Technical Analysis – Golden Cross (SMA)

I did a quick scan for Golden Cross using SMA and Alibaba just have the golden cross appear now. This has just confirm that it is a good time to plan for a position.

I will be sharing more indicators to determine how the price will be expected to move. Do read on to find out what my target entry price would be.

Technical Analysis – Relative Strength Index (RSI)

RSI has shown good momentum and this would indicate a good time to BUY. Something we might need to take note is the line is trending towards Overbought.

But it will not be in overbought region in near term, so we will not expect much sell offs.

Technical Analysis – Average Directional Index (ADX)

ADX is between 20 and 40 which indicate that Alibaba is in a developing trend, normally this is a good time to buy stock when it is in a strong bullish upside developing trend.

+DI is above -DI by a wide margins which indicate that this developing trend would only get stronger. I would consider to take a LONG position for Alibaba.

But before that, it would be better to check out any potential reversal for Alibaba first.

Technical Analysis – Parabolic SAR (SAR)

Alibaba just went on a bullish reversal and it is just starting out, this would be a good time to take a LONG position as indicated by the Parabolic SAR indicator as well.

I will be planning to take a LONG position today (11 Aug 23).

Summary

From what I observed, Alibaba is currently in a developing bullish trend. This is supported by a good RSI momentum.

On top of that, ADX is also showing a strong bullish upside movement. SAR has shown us that Alibaba has started on the bullish reversal. These indicators have given much confidence to take a LONG position for Alibaba today.

My estimated target price would be $98.50 to $99. If it fall below $98, i will check on the RSI as there might be selling as Alibaba approaches Overbought region.

As I mentioned always, do practice your own due diligence (DYODD) and monitor the price action. I will be doing the same as well.

Appreciate if you could share your thoughts in the comment section whether you would consider to take a LONG position for Alibaba today (11 Aug 23).

@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.