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Green day on Friday for Alibaba stock after gaining 1.19%

StockInvest.us, 11 months ago

Alibaba

The Alibaba stock gained 1.19% in the last trading day (Friday, 23rd Oct 2020), rising from $306.28 to $309.92. During the day the stock fluctuated 2.06% from a day low at $304.06 to a day high of $310.33. The price has been going up and down for this period, and there has been a 3.4% gain for the last 2 weeks. Volume fell in the last day by -2 million shares and in total, 6 million shares were bought and sold for approximately $1.91 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 an "Overweight" rating on October 20, 2020. The price target was set to $320.00 - $360.00. Over the last 30 days, this security got 7 buy, 0 sell, and 0 hold ratings.

The stock lies in the middle of a wide and strong rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 20.27% during the next 3 months and, with a 90% probability hold a price between $353.84 and $397.09 at the end of this 3-month period.

Alibaba

Mostly positive signals in the chart today. The Alibaba stock holds buy signals from both short and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $306.58 and $287.71. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday, September 10, 2020, and it has risen so far 15.84%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 months Moving Average Convergence Divergence (MACD). 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.

On the downside, the stock finds support just below today's level from accumulated volume at $293.98 and $286.00.There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Alibaba finds support just below today's level at $293.98. If this is broken, then the next support from accumulated volume will be at $286.00 and $265.80.

This stock had average movements during a day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $6.27 between high and low, or 2.06%. For the last week, the stock has had a daily average volatility of 2.32%.

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Alibaba stock to perform well in the short-term.

Check full Alibaba forecast and analysis here.