Friday, May 08, 2015

Alibaba: Recovery beckons

Alibaba (Code: BABA) was the largest global IPO for 2014. Listed at USD68 a piece, Alibaba quickly zoomed up to USD120 in November. From that high perch, the share started to decline. It made an intraday low of just under USD78 on May 5. Yesterday, it announced a set of results that beat the street expectation (48 cents vs. 43 cents) as well as the appointment of a new CEO.

Investors reacted positively- chasing the share price higher to close at USD86 (from previous day close of USD80). Technically, Alibaba has broken above its intermediate downtrend line, RR at USD85. Its immediate resistance is the horizontal line at USD87.50. If it can stay above the downtrend line, SS and charge through the USD87.50 resistance, Alibaba's recovery may begin.


Chart: Alibaba's daily chart as at May 7, 2015 (Source: Stockcharts.com)

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Alibaba.
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2 comments:

  1. Tony ThianFriday, May 08, 2015 2:28:00 PM

    Hi Alex, what's your view on IPMuda?

    ReplyDelete
  2. Alex LuMonday, May 11, 2015 12:16:00 PM

    Hi Tony Thian

    Ipmuda is a tough one to get right. It is like a quiet guy at the back of the classroom. You would never know what's going on inside his head.

    It seems to make its move after everyone has gone up. Will the current rally be any different? Who knows...

    It is a building material distributor. It should get more business in the current building mini boom. The fact that it is taking so very long to show good results, says a lot about the company.

    I will give it a miss.

    ReplyDelete