Moon gang: let's talk about alibaba in this video i'll, be giving you an update on the whole de-listing situation and then, after that i will be doing a technical breakdown of alibaba stock. So we know what levels of support and resistance to pay attention to in the coming days. But before i get into all that, if you're new to the channel don't forget to join the moon gang by hitting the subscribe button, your help as i work to hit 10 000 subscribers would be truly appreciated. And as always, if you enjoyed this video, don't forget to drop a like, because it really helps with getting it in front of other traders and investors who may be interested alrighty.

Then, let's get started on december 2nd. It was reported that the house passes china delisting bill and it is now being sent to the president for approval. So what in the hell does that mean? For us investors, the house of representatives on wednesday unanimously passed a bill that threatens to de-list chinese companies from u.s exchanges unless u.s regulators are able to inspect their financial audits within three years now. This is kind of a big deal because it would have an impact on very popular stocks such as alibaba, jd and neo.

With that being said, though, i don't think there's a need to panic at least not yet the logistics to implement the measures of this bill likely mean that the fallout won't be sudden or as drastic as they may sound. With the house vote, the bill goes to the president, who is expected to sign the measure and the senate already unanimously passed the bill over this summer. I strongly believe that the holding foreign companies accountable act will become law, but i don't think that means that companies such as alibaba will be removed from u.s exchanges. There's too much money at stake and three years is a lot of time to get everything in order, and i'm not alone.

In that opinion, patrick chovineck, i'm probably butchering that. I'm sorry, an economic advisor at silvercrest asset management said this. The three-year time horizon creates a framework for the us and china to negotiate. They will have three years to develop an offering for companies that can't meet compliance, and on top of that ts, lombard, economist, rory green, expects most u.s listed chinese companies to comply and avoid delisting.

For those of you who are specifically interested in alibaba, their chief financial officer, maggie wu, indicated that the company would try to comply with any legislation and reiterated that alibaba's financial statements have been prepared in accordance with u.s accounting standards and audited by pwc hong kong. Since 1999., so to sum this up, yes, there is a chance that alibaba could be removed from u.s markets, but i think it's very, very improbable. I think there's a better chance that the us and china comes to some sort of political agreement and even if they don't alibaba's financial statements seem to be in pretty good shape. However, if alibaba is de-listed for whatever reason, there are some brokers in the u.s, such as interactive brokers, that offers access to foreign markets.

Just so you know this solution would work for stocks such as baba, because it's listed on both the u.s and hong kong exchanges, but that doesn't mean it would work for every stock. For example, neo is only listed on the us market, so if it doesn't comply that could definitely cause a headache for some investors. Once again, though, at the time that i'm making this video, i strongly believe that d-listing is unlikely, i'm just bringing this to your attention. So i can paint you the full picture of what's going on and what might happen now, let's switch over to the chart to check out the technicals.

The market has now closed for the day and once again, three of the major indices, the dow, the s p. 500 and nasdaq 100 were all pretty much flat on the day. Alibaba was able to gain two percent which puts its stock baba just under 267 over the past week month and three months, alibaba's down roughly five percent, but from the start of the year. Until now, the stock is up 26 for those of you who have been keeping up with my alibaba videos, you'll be familiar with the current technical situation, but for those of you who are new to the channel, you should know that from a high level view the Stock has been in a bullish uptrend from march of this year.

Until now, more recently, though, in july alibaba was in this bullish, pennant, where it was making lower highs and higher lows, and it ended up breaking out and making a rally to the psychological level and knew relative high at 300. From there there was a sell-off in early september, which found support at 268, which is exactly where this bullish pendant started. Following that there was a failed bounce up to 283 and once 268 was reaffirmed, the stock had a very nice pop to the current all-time high. At 319 then november started, and that was not good for alibaba stock.

The ant ipo was delayed and the company was facing regulation issues both from china and the u.s. These issues caused so much stress that at one point the stock fell to 252 dollars, which means that it was down almost 20 percent. After a pretty positive earnings announcement and posting this new relative low the stock managed to rally up to the bottom of this gap zone at 280. Unfortunately, the stock once again gapped down, and that was because of the compliance issues in the u.s now.

This is why i really like technical analysis. Today's action marks the stock's second rejection at 268, which was previously where it found support, and it's also where this bullish pendant started. This is why it's so important to lay out the areas of support and resistance. Previous resistance can turn into support, which once again turns into resistance.

Knowing these areas of supply and demand can really help, you make better trading decisions now for my future predictions moving forward, i'm looking for alibaba to break above this newfound resistance at 268 and complete this gap fill up to 275, which would be a gain of 3.2 Percent, after that, the next resistance would be the bottom of this gap at 280, which would be a gain of 8.4, and then the top of that gap would be a gain of eight percent. Just so you know this. Relative high from mid-september at 284 could cause an issue in the middle of this region, but if and most likely, when alibaba gets above this gap, i would be watching 300 and, of course past that we have the all-time high at 319.. For those of you who are curious from the most recent close to get back to this all-time high, the stock would gain just under 20.

However, if the recent compliance issue spooks a lot of investors and the stock continues to drop and even breaks below the recent lows of 260 and 252, i strongly believe that buying shares of alibaba in the region of 241 to 246 would be an excellent long-term investment. As things currently stand, there's really nothing too special going on in the rsi there's no divergence or anything like that. I suppose it is kind of low, which would just be another reason to favor the bull camp, but to get a better idea of what may happen in the immediate future. Let's check out the four hour chart before we jump into this time frame.

For those of you who are interested, the name of the charting software that i use is trading view and there's a link to a free 30-day trial in the description of this video. If you sign up, it is a great way to support this channel, and on top of that, you get this awesome piece of software anyway, when you include pre and post market trading, you'll see that you get this new trend line, which is one of the main Things i'm waiting for the stock to break above all the way back until late october, alibaba stock has been in a pattern of hitting this trend line and dropping hitting the trend line and dropping, and so on. More recently, though, the stock has managed to post a new higher relative low, so as long as 260 can hold, i think this could mark an official trend reversal in the coming trading days, i'll be looking for the bull camp to hold the price level at 260. Fill this gap up to 275 and then eventually fill the gap up to 290..

Recently, it's been no secret that alibaba's stock trend has been down. I think that could all change, though, once it breaks above this trend line, and on top of that, the rsi is showing that it has room to run. In fact, i think it's more likely that we see a new all-time high out of alibaba before we see 200. What i'm trying to say is that years down the road, these current prices will be a big discount from where the stock will most likely be trading.

If you're a swing trader with a shorter time horizon, these levels of support and resistance are much more important to you. But if you're an investor you have to remember that alibaba is a gigantic technology company that has access to one of the largest markets on this planet. Once the ant group successfully ipos and all these compliance issues are dealt with. I really think that the moon is the limit for alibaba's stock.

On more of a personal note, i want you to know that. I'm not just saying this. I do practice what i preach. I am invested in alibaba and my cost basis is 255 and, as i said before, i would invest in more if the stock drops to this region between 241 and 246, and on top of that, i also own some call options.

The details of those options are on the screen. Now the strike price is 300, the expiration date is january 21st, and the premium that i paid per contract was 5 dollars and 30 cents. As things currently stand. I am down on this particular play, but i do have quite a while, so i'm not that worried.

In my opinion, the current risk to reward in alibaba stock is favoring the bull camp, which is why it's one of my favorite investments as things continue to develop, both fundamentally and technically, with alibaba i'll make sure to keep you updated in future. Videos. So make sure you have your notifications turned on thanks for watching. I really appreciate your support and i hope you were able to find some sort of value in this video.

As a quick reminder, i am not a financial advisor, so i would highly recommend that you do your own research with that being said, though, i would love to know your thoughts on alibaba in a comment below what do you think will happen with this whole? Delisting thing and how will it impact the stock if you're new to trading or, if you're, just looking for a new trading, account there's a link to the weeble trading platform in the description of this video? If you sign up and make a deposit of 100, you will be awarded 4 free stocks, it's worthwhile to check out and as always, if you enjoyed this video, don't forget to drop a like, and if you haven't already don't forget to join the moon game by Hitting the subscribe button, all that engagement really helps me out thanks for watching and until next time best of luck in the markets. You.