CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Alibaba (BABA) holding above 80 ahead of Q4 earnings release

Article By: ,  Market Analyst
May 26, 2022 4:41 AM

The fundamental backdrop has been challenging for China’s tech sector in general, whilst lockdowns in China and supply chain bottlenecks which simply have not recovered from the pandemic produced tough trading conditions for the ecommerce giant. As for performance, the stock has fallen just over -77% between October and March. Assuming it closes lower this month (which is looking likely), it’s on track to close lower for 13 months over the past 19.

 

It is therefore safe to say it is within in an established downtrend. But do investors want to be short at such low levels? Apparently not, with short interest just shy of 1.5%. But there could be plenty of money sat on the side lines waiting to scoop up a bargain at the first sign of a turnaround, the closer it gets to its record low. Also take note of the record high volume candle in March which coincided with a Doji. The fact it was able to recoup earlier losses in the month suggests a ‘change in hands’ may already be underway.

 

Alibaba Company Profile

 

 

Alibaba earnings released before US market open today

Alibaba will report Q4 fiscal earnings before US markets open today. Quarterly revenue is expected to rise 6.3% (CNY 199.256 billion) and earnings are forecast for CNY 7.39 per share, down from 10.32 in the same quarter last year. Of the analysts polled, 39 have a ‘strong buy’, 6 have a ‘hold and 2 ’sell’. If earnings can surprise to the upside perhaps it can help the stock rally from support, although at the time of writing the Hong Kong listed stock (9988) is down around -2.5%.

Ultimately, unless we see more stimulus from Beijing coupled with support specifically for the tech sector, it may take some time for the tide to turn for bullish investors. But with the stock holding above March’s low and also above 80, we see the potential for a rise over the near-term.

 

 

How to trade with City Index

You can trade easily trade with City Index by using these four easy steps:

  1. Open an account, or log in if you’re already a customer 

    • Open an account in the UK
    • Open an account in Australia
    • Open an account in Singapore

  2. Search for the company you want to trade in our award-winning platform 
  3. Choose your position and size, and your stop and limit levels 
  4. Place the trade

 

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024