Alibaba stock upgraded to Hold/Accumulate.StockInvest.us, 9 months ago
The Alibaba stock price gained 1.59% on the last trading day (Thursday, 19th Nov 2020), rising from $255.83 to $259.89. During the day the stock fluctuated 3.09% from a day low at $253.56 to a day high of $261.40. The price has fallen in 8 of the last 10 days and is down by -9.68% for this period. Volume fell on the last day by -8 million shares and in total, 21 million shares were bought and sold for approximately $5.35 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
Barclays is very positive to BABA and gave it a "Overweight" rating on November 09, 2020. The price target was set to $360.00 - $365.00.Over the last 30 days, this security got 7 buy, 0 sell and 0 hold ratings.
The stock lies in the lower part of a wide and weak rising trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at $255.96 is broken, it will firstly indicate a slower rate of rising, but may also be an early warning for a trend shift. Given the current short-term trend, the stock is expected to rise 2.59% during the next 3 months and, with a 90% probability hold a price between $262.59 and $327.55 at the end of this 3-month period.
A buy signal was issued from a pivot bottom point on Wednesday, November 18, 2020, and so far it has risen 1.59%. Further rise is indicated until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. The Alibaba stock holds sell signals from both short and long-term moving averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $260.23 and $292.44. A break-up above any of these levels will issue buy signals. Furthermore, there is currently a sell signal from the 3 months Moving Average Convergence Divergence (MACD).
Alibaba finds support from accumulated volume at $258.31 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This stock may move much during a day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $7.84 between high and low, or 3.09%. For the last week, the stock has had daily average volatility of 2.44%.
Alibaba holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. We have upgraded our analysis conclusion for this stock since the last evaluation from a Sell Candidate to a Hold/Accumulate candidate.Check full Alibaba forecast and analysis here.