Alibaba Group A New High with Less Convincing Technical Indicators
Alibaba Group (9988.hk) has reached a new high on Wednesday, however some technical indicators are less convincing...
Share this:
China Securities Regulatory Commission has approved Alibaba Group's (9988.hk) Ant Group IPO in Shanghai, as the company seeks to raise 35 billion dollars in a dual listing in China and Hong Kong.
On the other hand, Fitch Ratings has affirmed Alibaba Group's "A+" credit rating, outlook "Stable". The rating agency said "the affirmation underscores Alibaba's very strong business profile, large economies of scale, strengths in digital economy, increased revenue diversity, continued robust profitability, high free cash flow generation and conservative capital structure".
From a technical point of view, Alibaba Group (9988.hk) remains trading within a bullish channel drawn from May as shown on the daily chart. However, it has reached a new high on Wednesday with a less convincing candlestick again, while the relative strength index continues to show bearish divergence. Therefore, investors might have to remain cautious as consolidation might be due before the next rally. The level at $280 might be considered as the nearest support, while the 1st and 2nd resistance are expected to be located at $305 and $326 respectively.
Source: Gain Capital, TradingView
China Securities Regulatory Commission has approved Alibaba Group's (9988.hk) Ant Group IPO in Shanghai, as the company seeks to raise 35 billion dollars in a dual listing in China and Hong Kong.
On the other hand, Fitch Ratings has affirmed Alibaba Group's "A+" credit rating, outlook "Stable". The rating agency said "the affirmation underscores Alibaba's very strong business profile, large economies of scale, strengths in digital economy, increased revenue diversity, continued robust profitability, high free cash flow generation and conservative capital structure".
From a technical point of view, Alibaba Group (9988.hk) remains trading within a bullish channel drawn from May as shown on the daily chart. However, it has reached a new high on Wednesday with a less convincing candlestick again, while the relative strength index continues to show bearish divergence. Therefore, investors might have to remain cautious as consolidation might be due before the next rally. The level at $280 might be considered as the nearest support, while the 1st and 2nd resistance are expected to be located at $305 and $326 respectively.
Source: Gain Capital, TradingView
Related tags:
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Nikkei threatens breakout as tech rebound broadens
Breakouts across the SOX and Nasdaq are being matched by rebounds across Asia, with the Nikkei now threatening to join the move.
S&P 500, Nasdaq 100 Forecast for the Week Ahead
A hawkish Fed and 10-Year Notes on the verge of a push above 5%, yet stocks have so far shrugged off that fear. But can it continue?
Hang Seng Tech rout nears make-or-break zone
The technical damage is clear, but with Hang Seng Tech now deeply stretched and approaching major support, the risk-reward is becoming more two-sided.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.