To The Moon

I believe most of us are familiar with Sea limited due to shopee and garena. Today, we are going to talk about this company before its earnings release tomorrow. 

For the past few weeks, Sea Limited investors have witnessed a remarkable revival in buying sentiments late despite intensified competition from TikTok. Investors likely anticipate more optimistic guidance at Sea Limited's upcoming earnings release this coming Monday.

SE

SE seems on the verge of a decisive breakout for further potential gains towards the $55 and $70 level. Unless Sea disappoints with its forward guidance again, the risk/reward looks increasingly attractive. I was surprised that SE still demonstrated resilience as it bottomed out in January 2024 before staging an almost 45% recovery through this week's highs.

It is possible that investors still anticipate a profitable push for Sea Limited.

With Sea Limited still expected to be the e-commerce leader in Southeast Asia, I assessed that Shopee can still enjoy scale economies, notwithstanding TikTok's gains. Furthermore, with Alibaba (BABA) undergoing a major reorganization under new CEO Eddie Wu, Lazada experienced recent layoffs as China's e-commerce leader looks to rejuvenate its growth profile. As a result, it's possible that SE could have formed its long-term bottom at the $35 level, bolstered by the resurgence in constructive buying sentiments over the past month.

For all the reasons above, I am optimistic with $Sea Ltd(SE)$  earnings this week. 

SE daily chart 

From the technical chart, SE demonstrates an extreme bullish uptrend since early this year. This might be an indication of the company recovery! 

However, for the Chinese e-commerce companies, the situation is not as good as SE. Let's start with $Alibaba(BABA)$ , I am short term bearish with Alibaba due to its major reorganisation with may take some time. It's technical chart also shows a bearish and consolidation phase at this moment, nothing much to see.

BABA daily chart 

JD also experienced a bad downtrend for months. Early this year, the stock seems to find its bottom and form a few higher low recently which may signify a trend reversal. Currently, the stock price is at its trendline support, shown in BLUE in the chart below. It will release its earnings as well next week. With the economy recovery and consecutive good earnings report by Chinese companies, I believe JD will deliver a satisfying results too! A bullish vote $JD.com(JD)$  for the company next week.

JD daily chart

Next, let's look at the strongest Ch in nese e-commerce stock, PDD. Following a few impressive earnings result, PDD stock price doubled in 6 months and encountered some correction since early this year. currently, the stock price reaches its uptrend line support, which might probably send the stock to rebound stage next week $Pinduoduo Inc.(PDD)$  . Let's monitor closely for possible entry as the risk ratio reward at this support level will kbe very good. 

PDD daily chart 

How do you look into Sea earnings tomorrow? Come and leave your comments below, let's learn and grow together 😁 

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