Buy or Sell #Alibaba? Chinese regulators announced an investigation against Jack Ma’s company over alleged monopolistic practices. and the man himself has vanished, there is a great deal of speculation now as to where Jack Ma is with a good many people thinking he is in Jail or under detention.
Ant Group, was also summoned by the People’s Bank of China, China Banking Regulatory Commission, and China Securities Regulatory Commission, and State Administration of Foreign Exchange, for “supervisory and guidance” talks.
This has caused Alibaba’s share price to go on a freefall since October 2020. The question is… is Alibaba still worth looking at?
Here’s the thing, even if Jack Ma is in custody in some form and the assets are taken it is China not the USA, Jack Ma will eventually comply, the shares will not be dumped by the Chinese Government so the downside is somewhat limited.
China won’t kill a cash cow, Jack will be back at work but with a new, strict boss.
Alibaba closed up 9.290 at 236.190. Volume was 96% above average (neutral) and Bollinger Bands were 34% wider than normal.
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
Alibaba is currently 4.9% below its 200-period moving average and is in a downward trend.
Volatility is extremely high when compared to the average volatility over the last 10 periods.
There is a good possibility that volatility will decrease and prices will stabilize in the near term.
Our volume indicators reflect moderate flows of volume out of Alibaba (mildly bearish).
Our trend forecasting oscillators are currently bearish on Alibaba and have had this outlook for the last 9 periods.
Overall, the bias in prices is: Downwards.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles.
During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.
