What is going on moon gang, i hope you're having a good one. So today i want to have a quick chat about alibaba. I will be sharing why i personally believe that alibaba stock is well positioned to have considerable returns in 2021. Also, i will be doing a technical analysis of alibaba stock, so we have a better idea of what price levels will be in play over the next few trading days.

Before i get into all that, though, don't forget to join the moon gang by hitting the subscribe button and dropping a like all that engagement really helps this channel out and now without further ado. Let's get started alrighty, then, with the world getting back to normal. The stars aligned for emerging market growth in 2021, if you happen to be an alibaba investor, that headline should put a big old smile on your face. Emerging markets enter 2021 with a new and improved image.

China, south korea and taiwan, which account for two-thirds of global equities index flipped the script on developing markets in 2020 because of how they handled the rona problem. The four biggest companies in the emerging markets index, alibaba, taiwan, semiconductor tencent and samsung electronics are all world class path breakers in the past. You might buy the emerging market index to add a little risk, but now you're, looking at long duration, growth opportunities and on top of that things, get even better external stars also appear to be aligning for emerging markets. A vaccine-driven global recovery should spur exports.

The binding administration should make u.s trade policy more predictable, if not more liberal, an ultra dovish federal reserve mutes the threat of a bump in u.s interest rates, which would suck capital back into the dollar. Now i know that this last part is a little bit confusing, but all that you really need to know is that the new fed policy is really dampening risk which makes merging market stocks very attractive in 2021.. Basically, stocks like alibaba are well positioned to benefit from both the global recovery and the current political landscape. Personally, i am very bullish on alibaba's future, but if you're interested in playing the entire basket of em stocks, i would recommend checking out these two etfs ishares msci.

China, etf mchi outperformed the s p 500 in 2020 by nine percent, and then the emerging markets, internet and e-commerce etf emq really outperformed it and was able to gain 77 this past year. Now, at the time that i'm making this video, i haven't personally dealt with these two etfs, but they did do pretty well in 2020 and i'm expecting them to do even better in 2021, partly because i'm predicting that alibaba will have very impressive returns to get a Better idea of what alibaba might do over the next few days, though, let's check out the charts. Okay, the third trading week of december, is now over and three of the major indices all closed the week out in the red. Honestly, though, i really wouldn't worry, because both the dow and s p 500 made new all-time highs yesterday and then the nasdaq 100 posted a new all-time high.

Today alibaba lost 1.7, which puts its stock at exactly 260 dollars over the past week. Alibaba is down 1.73, but from the start of the year until right now, the stock is up a pretty respectable 22. Here is the current technical situation that alibaba is in for those of you who are new to the channel. Here's a pretty quick recap of.

What's been going on with the stock in july, alibaba is making lower highs and higher lows which form this triangle, and it's also referred to as a bullish. Pennant, as its name suggests, these commonly break upwards and that's exactly what happened and alibaba ended up rallying to the key psychological level of 300. After hitting this new relative high, there was a sell-off and support was eventually found at 268, which was the exact start of this bullish pennant. Then we saw a new relative high at 283 and once 268 was reaffirmed, the stock shot up to the current all-time high of 319..

From march until late october, alibaba was in a clear bullish uptrend, because the stock was consistently posting lower highs, but as november got underway, the music kind of stopped alibaba was hit with the ant ipo getting delayed, and then there was also regulations from the chinese government. Both of these things knocked the stock down to 252 and after a small bounce up to the bottom of this gap at 280, then the company was hit with regulation issues from the u.s government, which knocked the stock back down to 260 and after a small recovery Up to 270, the chinese government actually fined alibaba for anti-monopoly issues which knocked the stock now down to 260.. It's pretty clear that alibaba hasn't been ending the year out on a positive note, in fact, from this all-time high. The stock is now down 18, but i want to remind you that this sell-off is mainly because of short-term problems, and once the chinese and us government are both appeased.

I believe the stock will return to its trip back to the moon. Given enough time, alibaba will make a new all-time high, i mean seriously, it is a gigantic technology company and it has access to one of the largest markets on this planet. In the meantime, though, we do have to pay attention to the upcoming levels of support and resistance. Alibaba closed the week out at 260 dollars, which is where the stock found support in early december, and this price level also served as resistance back in this bullish pennant.

If the bears were to push alibaba below that, i would then be watching 252, which is where the stock caught itself twice before and if it were to go even lower. I would then suggest watching 240, which was the start of this pennant. I have this area in green because i think that there will be a lot of demand in this region of support. In other words, if alibaba were to get down here, i'm planning on buying even more because i would view it as an excellent investment opportunity.

I strongly believe that years down, the road alibaba shock will be trading way higher than 250-ish dollars when the stock does eventually bounce, which could happen right away because it is currently out of support. The first region of resistance would come between 268, which is a previous relative high and then the bottom of this gap at 271.. Once the stock gets above that, i would be looking for a gap fill up to 275 past that the next resistance would come at 279 and similar to this gap. I would then be looking for a gap fill up to 291.

Overall, i do feel pretty good that alibaba will change course sooner rather than later, because well frankly, the revenue is very good for their stock price and on top of that, more from a technical perspective, there is divergence in the rsi. If you take a look at these last two relative lows, you'll notice that the rsi is slightly higher on the second time, which means that more people are stepping in to buy alibaba at these prices. The fact that more traders and investors are buying is telling me that there's some sort of undiscovered value at these levels now to get a better idea of what alibaba might do over the next few training days. Let's check out the four hour chart, i wanted to quickly mention that the name of this charting software is tradingview and, if you're interested in it, there's link to a free 30-day trial.

In the description of this video alrighty back to alibaba, when you include pre and post-market trading, you do get this new trend line and you'll see from the end of october. Up until now, the stock has bounced off of it. One two three, four: five six different times. What i would like to point out, though, is that all these oscillations from high to low and back again have been getting smaller and smaller in the world of trading.

Periods of expansion are followed by consolidation and vice versa. Right now, the stock does seem to be consolidating, tighter and tighter, which leads me to believe. As soon as there's a breakout, we will see a considerable move upward. Obviously, the considerable move could be downward, but i really don't think that's likely, because i don't think that the bear camp can protect this trend line that much longer once alibaba gets above this trend line and holds, i will be looking for the stock to quickly fill This first gap up to 276 and then eventually fill the second gap up to 291.

However, if we have to wait for attempt number 7 and the stock gets knocked back down anywhere between 240 and 252 would be a solid investment in my personal opinion. Just so you know i do practice what i preach. I am invested in alibaba and my cost basis is 255. I would love the chance to lower that average.

If this bearish scenario were to play out moving forward, i would recommend watching for divergence in the rsi and then paying attention to these key price levels. Along with this trendline. I really do believe that a breakout will be coming sooner rather than later, as things continue to develop, both fundamentally and technically, with alibaba i'll make sure to keep you updated in future videos. I would love to know your thoughts on alibaba in a comment below.

Where do you see the stock going in both the short term and long term? Also, if you have any questions or suggestions feel free to post those as well? 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 support is truly appreciated. Also, i have two quick reminders for you. This upcoming trading week will be a shortened one because of holidays, and also, if you enjoy free stocks, make sure to check out the link to the weeble trading platform.

In the description of this video thanks for watching and until next time. Best of luck in the markets, you.