{"id":148670,"date":"2019-05-30T10:39:03","date_gmt":"2019-05-30T14:39:03","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=148670"},"modified":"2019-05-30T06:39:57","modified_gmt":"2019-05-30T10:39:57","slug":"alibaba-analysis-slower-revenue-growth-expectations-bearish-for-alibaba-prices","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/05\/alibaba-analysis-slower-revenue-growth-expectations-bearish-for-alibaba-prices\/","title":{"rendered":"Alibaba Analysis: Slower revenue growth expectations bearish for Alibaba prices"},"content":{"rendered":"<div id=\"inves-262287432\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">May 30, 2019<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By <a href=\"http:\/\/www.ifcmarkets.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">IFCMarkets<\/a><\/strong><\/p>\n<p><strong>Slower revenue growth expectations bearish for Alibaba prices<\/strong><\/p>\n<blockquote><p>Alibaba Group Holding Ltd sales growth has decelerated while it beat 2018 fourth quarter sales forecast. Will the <a href=\"https:\/\/www.ifcmarkets.com\/en\/market-data\/stocks-prices\/baba\"> Alibaba price<\/a> continue declining?<\/p><\/blockquote>\n<p>Alibaba Group Holding Ltd beat fourth-quarter revenue forecasts two weeks ago: revenue increased 51% for January-March from a year earlier to 93.50 billion yuan ($13.6 billion). Alibaba forecast its revenue for the full fiscal year ending in March 2020 will record a 33% increase on the previous year. However Alibaba\u2019s top-line growth rates have slowed sharply from a few years ago. Core commerce segment accounts for 86% of BABA\u2019s revenue. In the past couple of years, core e-commerce revenue growth has decelerated from 55-54% over year in the first quarter of 2018 financial year to 28% in 2019. The sales growth slowing is happening while most of Alibaba\u2019s new initiatives are still losing money. Slowing revenue growth is bearish for Alibaba stock price<\/p>\n<p style=\"text-align: center; margin-bottom: 20px; margin-top: 20px;\"><img decoding=\"async\" style=\"float: none;\" src=\"https:\/\/www.ifcmarkets.com\/uploads\/images\/BABA_O_30May2019.png\" alt=\"BABA is falling below MA(200) 05\/30\/2019 Technical Analysis IFC Markets chart \" width=\"660px\" \/><\/p>\n<p class=\"ul-tick\">On the daily timeframe the <b>S-BABA: D1<\/b> has breached below the 200-day moving average MA(200) and Fibonacci 61.8. This is bearish.<\/p>\n<ul class=\"ul-tick\">\n<li>The <b>Parabolic indicator<\/b> gives a sell signal.<\/li>\n<li>The <b>Donchian channel <\/b> indicates downtrend: it is tilted lower.<\/li>\n<li>The <a href=\"https:\/\/www.ifcmarkets.com\/en\/ntx-indicators\/macd\">MACD indicator <\/a> gives a bearish signal: it is below the signal line and the gap is widening.<\/li>\n<li>The <a href=\"https:\/\/www.ifcmarkets.com\/en\/ntx-indicators\/stochastic\"> RSI oscillator <\/a> is in the oversold zone. this is bullish.<\/li>\n<\/ul>\n<p>We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 150.68. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above the fractal high at 180.19. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit\/loss ratio to the breakeven point. If the price meets the stop loss level (180.19) without reaching the order (150.68), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.<\/p>\n<h2 class=\"emailSummary\" style=\"margin-top: 15px !important;\">Technical Analysis Summary<\/h2>\n<table style=\"border: solid 1px black;\" cellspacing=\"0\" cellpadding=\"0\" align=\"left\">\n<tbody>\n<tr>\n<td align=\"left\" valign=\"top\"><b>Position<\/b><\/td>\n<td align=\"left\" valign=\"top\">Sell<\/td>\n<\/tr>\n<tr>\n<td align=\"left\" valign=\"top\"><b>Sell stop<\/b><\/td>\n<td align=\"left\" valign=\"top\">Below 150.68<\/td>\n<\/tr>\n<tr>\n<td align=\"left\" valign=\"top\"><b>Stop loss<\/b><\/td>\n<td align=\"left\" valign=\"top\">Above 180.19<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Market Analysis provided by <a href=\"http:\/\/www.ifcmarkets.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">IFCMarkets<\/a><\/p><div id=\"inves-4171365248\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By IFCMarkets Slower revenue growth expectations bearish for Alibaba prices Alibaba Group Holding Ltd sales growth has decelerated while it beat 2018 fourth quarter sales forecast. Will the Alibaba price continue declining? Alibaba Group Holding Ltd beat fourth-quarter revenue forecasts two weeks ago: revenue increased 51% for January-March from a year earlier to 93.50 billion [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-148670","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/148670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=148670"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/148670\/revisions"}],"predecessor-version":[{"id":148684,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/148670\/revisions\/148684"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=148670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=148670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=148670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}