What's going on moong, i hope that you're, having a fantastic day in this video, i will be talking about one of my favorite stock place at the moment. Alibaba. I will be going over some recent news related to the company and then i will be doing a technical breakdown of alibaba stock, so we know what to watch for as things develop, but before i dive into all of that, if you're new to the channel, don't Forget to join the moon gang by hitting the subscribe button, i'm very close to 5 000 subscribers, and your help with hitting that goal 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 and now that i got that out of the way.

Let's get started on monday november 23rd. Rowan street capital released their q3 2020 investor newsletter to the public, and i would like to bring your attention to their remarks on alibaba, more specifically, why they are optimistic on the company's future and very bullish on the stock. Here is their investment thesis now there is quite a bit of detail in this investment thesis, so if you're at all interested in alibaba, i would highly recommend checking it out i'll make sure to link it in the description of this video. But in the meantime, let's go over some of the key parts, as i've mentioned multiple times before, alibaba has access to a truly gigantic market.

China's 5.5 trillion domestic consumption market is driven by two massive demographic forces. We believe that alibaba is uniquely positioned with the capability to capture opportunities of both the growing middle class in metropolitan areas and urbanization of lower tier cities. Next is the rapid pace of digitization. Basically, the chinese economy has become increasingly reliant on new technology, and alibaba is not only one of the biggest technology companies in china, but also the entire world.

So there's a very good chance that it will continue to ride the wave. And finally, the part that i found to be most interesting was their take on the classic question of amazon or alibaba. As you can see on this chart, amazon has had a return of 885, while alibaba is up 244. So what happened? Did amazon grow faster than alibaba at first glance, you might think that the obvious answer is yes, but things aren't always as they seem.

You have to turn to the numbers. Revenues at alibaba grew nine times since its ipo in 2014 and amazon's only grew 3.8 times over the same period. Now to be fair. There are multiple factors that go into this, but i still thought it was interesting and worth consideration.

Rowan capital's bullish thesis didn't just stop at a comparison to amazon. They also discussed how alibaba did very well during the recent global issues, and they also brought up how ali cloud will be a huge revenue generator for the company. Once again, there is quite a bit of detail in this report, so i would highly encourage you to check it out, but to quickly sum it up. Rowan, capital and really a lot of firms on wall street are very excited about what alibaba stock will return in the coming years.

In a previous video, i spoke about how new chinese anti-trust regulations hurt alibaba stock, and now i have a positive update for you. Alibaba ceo strikes conciliatory tone for china's plans for tougher tech regulation. Alibaba ceo, daniel zang has described plans by chinese regulators to tighten restrictions on internet companies as timely and necessary. The remarks from zain come as alibaba finds itself in the crosshairs of chinese regulators.

News have been imminent crackdown, sent shares of the company and other chinese tech giants plunging earlier this month, that came after official slam breaks on the blockbuster ipo of ant group, which is alibaba's financial affiliate and operates alipay. This last part is pretty important because the ipo was set to be the biggest one ever to date. Striking a more conciliatory tone. Zhang said on monday that he welcomes more regulation and noted that china's digital economy has thus far been able to develop and innovate rapidly.

Thanks to government policies, now, if you ask me, i think that the ceo is just playing nice. I highly doubt he actually believes what he's saying he just doesn't want to fight with his own government, because that is never good for your stock price. The fact that the ceo is willing to play ball makes me think that these regulation issues will be sorted out sooner rather than later. But don't forget, there are still regulation problems within the us related to auditing as things develop with any of this i'll make sure to keep you updated in future videos.

But in the meantime, let's switch over to the charts. Okay, then, the market has now closed for the day and a lot of the stocks were in the green three of the major indices, the dow, the s p, 500 and the nasdaq 100 all gained roughly 1.5 percent and the subject of this video alibaba was up 3.65 alibaba trades under the ticker baba and its stock is sitting just below 280. Today's volume was a little light compared to its own 10 day average and at this price level, that means that alibaba has a market cap of 730 billion dollars over the past week. Alibaba is up 9 over the past month, it's down 9, but from the start of the year until right now, it's up 32 percent.

Here is the current technical situation that we are dealing with. As a brief recap of, what's been going on from the start of 2019, until now, alibaba stock has been in a clear bullish, uptrend more recently, from july until august, the stock was consolidating in this bullish, pennant, where it was making lower highs and higher lows, and This led to a breakout and a new relative high of 300. This was followed by a sell-off that found support at 268, which was the top of this pennant. This was followed by a failed bounce up to 283 and once 268 was validated again alibaba shot up to its current all-time high of 319.

From there the stock fell, because the ant group ipo was delayed and alibaba was facing new challenges from both u.s and chinese regulators. At one point, it was down almost 20 percent but following a pretty solid singles day, event, a bullish earnings announcement and the company's willingness to deal with the regulators. Investors have found value at these prices and, since this low alibaba has managed to rally almost 10 percent in a video that i made a week ago, i said that if alibaba were to get about 268, the next major resistance would come at 280, which is exactly Where the stock closed today, if this bullish momentum continues, the next price i will be watching will come at 283, which was resistance in mid-september past that we have the top of this gap at 290, which would be a gain of 3.7, and just so you know The all-time high of 319 would be a gain of 14. However, if alibaba were to get rejected anywhere in this region, the first support would come at 268, which is exactly where the stock caught itself twice before from the most recent close.

That would be a drop of 4 if the bears somehow pushed the stock. Through this support, which i don't think that they will. The next support would be the recent low of 252, which would be a drop of 9.8 percent, and for those of you who are curious, this region between 246 and 241 would be a drop of 13. I'm bringing this area to your attention because, even though i don't think it's likely if alibaba were to return to it, i would buy as many shares as i possibly could, because it would be an excellent opportunity.

As things currently stand. My personal prediction for alibaba is to fill this gap at 290 and then we'll be seeing 300 in december or january, but to get a better idea of what might happen in the immediate future. Let's switch over to the 4-hour chart when you include pre and post market trading, you get this trend line which could end up bolstering the resistance between 283 and 284, but if the bull camp shows strength and gets it up to 290, there is nothing stopping the Stock from hitting 300. with that being said, though, please pay close attention to the rsi.

Currently, it still does have more room to run, but alibaba likes to consolidate after hitting 75.. If this situation ends up playing out, it could be an opportunity to invest in more shares of the company before the next breakout. You should also closely be watching for divergence. Previously, we saw bullish divergence in the rsi which led to this bounce.

So if we end up seeing bearish divergence, it could be indicative of a drop. Personally, i do own shares of alibaba and my cost basis is 255. I would consider buying more shares at this support of 268, but ideally i would wait for somewhere between 240 and 250. if the stock never gets there.

That is perfectly fine, because i'm more than happy with my current position and i'm planning on holding those shares for years to come in the coming months. If i see the rsi get this low and there's another divergent setup, i would be more than willing to increase my position moving forward in the immediate future. I would recommend paying close attention to the previous resistance of 284, which now aligns with this trendline. If the bulls can push the stock above it right away, i would watch 290, but if they don't, i would look for a bounce off of the previous support of 268 or this trend line around 274 from a high level view.

I agree with rowan capital and that alibaba is a long-term winner. In fact, i think that these prices are a big discount from where the stock will be trading years down the road, 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 and as a quick side note, the name of the charting software that i use is tradingview and there's a link in the description of this video. The company is currently running a black friday deal that is 60 off and you get the first month free if you feel like checking it out, it's a great way to support this channel thanks for making it to this point in the video.

I truly appreciate your support if you have any suggestions or recommendations, please feel free to. Let me know as a quick reminder. Everything expressed in this video are my own opinions and i am not a financial advisor, so i would highly recommend that you do your own research because after all, it is your own money. I would love to know your thoughts on alibaba in a comment below.

Are you buying selling or holding, 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 gang 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.