Score 8.2 (out of 10): ALIBABA GROUP HOLDING-SP ADR sets up for -3.1% drop in 2 weeks

39

What’s Going On Here?

Chinese authorities have taken a tough regulatory stance on the technology sector affecting stocks like Alibaba which has likely caused the widespread correction in the Chinese tech sector.

Why Now?

ALIBABA GROUP HOLDING-SP ADR has triggered a new price range signal. During similar occasions, ALIBABA GROUP HOLDING-SP ADR shares had a median return of -3.1%, over the following 2 weeks – based on 10 historical occasions with 9 of those showing negative returns (90%). This sell signal for ALIBABA GROUP HOLDING-SP ADR received a high score of 8.2 (out of 10). This insight was generated on 2022-August-25 with last price of 99.89.

What’s This Company About?

ALIBABA GROUP HOLDING- SP ADR is in the E-Commerce/Products business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: BABA US.

What’s My Risk / Reward and Time Horizon?

We found 2 weeks to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 96.8 (-3.1%) has been reached. Based on ALIBABA GROUP HOLDING-SP ADR’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 106.09 (last price at 99.89), which is equivalent to a 6.2% rally.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

0.8% (June-2022), -7.3% (January-2022), -8% (October-2021), -10.1% (June-2021), -4.6% (April-2021), -0.8% (January-2021), -0.7% (April-2020), -1% (November-2019), – 1.5% (February-2019), -14% (December-2018).

Historical Chart:

Summary:

NameALIBABA GROUP HOLDING
ViewUp
Star (1 to 10)8.2
Target-3.1%
Time2 weeks
Hit Rate90%

———————————————————————a

Leave a Reply