What's going on moon gang, i hope you're having a phenomenal day in this video, i will be discussing the chinese titan alibaba. I will be going over some recent regulatory news related to the company. I will be doing a technical breakdown of its stock and at the end i will be sharing exactly where and why i just invested in alibaba, but before i get into all that fun stuff. If you're new to the channel don't forget to join the moon gang by hitting the subscribe button, i'm attempting to hit 5 000 subscribers by the end of this year and your help with that 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 people who may be interested, and now that i got that out of the way. Let's get started in my most recent video related to alibaba. I spoke about how china regulators are drafting new anti-trust, anti-monopoly rules that will most likely have a negative impact on the company if you're interested in that i'll make sure to link it in the description of this video. But now to the dismay of many investors, alibaba is facing issues with u.s regulators on tuesday november 17th.

This article came out on bloomberg. Sec pushes urgent plan that could delist chinese companies. Now there is quite a bit of detail in this article and i'll only be going over some of the main points. So if you would like to read the entire thing, it can easily be found with a google search.

The u.s securities and exchange commission is pushing ahead with a plan that threatens to kick chinese companies off u.s stock exchanges, setting up a late clash between washington and beijing. By the end of this year, the sec intends to propose a regulation that would lead to the de-listing of companies for not complying with u.s auditing rules. At issue is the problem that has vexed u.s regulators for more than a decade. China's refusal to lit inspectors from the public committee accounting oversight board wow, that's quite a mouthful review, audits of alibaba and other firms that trade on american markets.

This lack of oversight is what allowed the accounting scandal at luck and coffee to be possible, and it caused a lot of people to lose a lot of money to clarify, though at this moment in time, this whole delisting thing is just a proposal and it doesn't Necessarily have to end in a political bloodbath. In fact, the vice chairman of the china securities regulatory commission sounded a positive note on resolving the issue at a panel discussion earlier this week, saying it's important to ensure that chinese companies have access to the international capital markets. He continued by saying, i think, during the biden administration, we should be able to resolve that problem because it's not an intractable problem. In other words, this may not develop into anything whatsoever, but i just wanted to bring it to your attention because it could become serious i'll make sure to keep you updated in future videos and now, let's switch over to the charts alrighty.

Then, when the stock market closed for the day, things did not look the best. The s p, 500 dropped 1.2 percent, the tech, heavy nasdaq, 100 dropped 0.74 and the subject of this video alibaba dropped, 0.38 alibaba trades in the ticker b-a-b-a, and the stock is currently sitting at 255. At this price level, alibaba is still huge with a market cap. Just under 700 billion dollars, as you can see from this chart, it has been selling off recently and over the past month, it's down 17 over the past three months, it's down 0.76, but from the start of the year.

Until now, it's up 21, if you've been keeping up to date with my technical breakdown videos, you will be familiar with this current technical situation. Overall alibaba has been in an obvious uptrend from the start of 2019. Until now, of course, there was a sell-off at the start of this year, just like with every stock, but the overall trend has still remained bullish. More recently, in july of this year, alibaba was consolidating in this bullish wedge, where it was making higher lows and lower highs, and then in mid-august there was a breakout and a run to the key psychological level of 300.

From here there was a small sell-off that found support at the top of the wedge from july. Then there was another rally to the current all-time high of 319. Unfortunately, after posting, this high alibaba was hit with the ant ipo being delayed, china regulations and u.s regulations. All of this prompted a sell-off and from this high alibaba is currently down just over 19 percent.

Today's close officially marks the second close below the trend line that was formed in july and august. If the stock continues downward. The next major support would come at 246, which would be a decline of 3.7 percent and below that we have 241, which would be a decline of 5.8. I have this area highlighted in green, because if the stock were to drop to it, i think it would represent an excellent buying opportunity, but i'll talk more about that in just a bit whether the stock pulls an early u-turn or bounces.

Off of this support. The next resistance would be at 268, which served as previous support in september and resistance in july from the most recent close. That would be a gain of 4.8 percent if and most likely, when the bocam pushes the stock. Above this, i would then be watching the gap region between 280 and 290, which also happens to include the relative high from mid-september at 284.

This would roughly be a gain of 11 percent and, of course, for those of you who are curious to get back to the all-time high at 319, that would be a gain of 25 moving forward. I think that alibaba stock will bounce sooner rather than later. Fundamentally, the most recent earnings report was pretty solid. The company did extremely well with the singles day event, and i honestly think that the regulation issues will eventually blow by and from a technical perspective.

The stock is coming up on an incredibly important area of support, and on top of that, if we look at the rsi, we are getting very close to the oversold zone. It's just a matter of time before investors find value at these prices, which will most likely be a huge discount years down the road to better explain why i invested today. Let me switch over to the four hour chart so, as you saw on the daily timeframe, alibaba's rsi value was not yet in the oversold territory. The same cannot be said about the 4-hour chart.

I want to bring your attention to these three points from november 11th. Until the 18th alibaba stock was making new relative lows, but the rsi wasn't, this is referred to as bullish divergence and it commonly means a bounce or at least a period of consolidation is about to ensue. So i knew i wanted to buy shares of alibaba, because i like the company's fundamentals and when i saw this technical development today, along with the upcoming region of support, i decided to invest a partial position for my portfolio and the cost basis is exactly 255.. I want to emphasize that i said partial position because in all honesty i would love to buy more shares between 241 and 246, but now, if the stock bounces early because of what we're seeing in the rsi i'll already be invested in some shares.

So it's a win-win. I'm fully planning on holding these shares for years to come, and that's because i believe in alibaba. I think that the ant ipo will be huge for the company. Tmall is an excellent revenue generator and in more of a general sense.

Alibaba has great exposure to the massive chinese market, as things continue to develop, both fundamentally and technically, with alibaba i'll make sure to keep you updated in future videos and also keep you posted on when i buy more shares of the company. So make sure you have your notifications turned on. In my personal opinion, alibaba does have some regulatory challenges ahead, but i ultimately think that the stock is trading at a discount. In fact, i would love the opportunity to buy more shares at the upcoming level of support, because i believe that the stock will be trading much higher years down the road with that being said, though, these are my own opinions and i'm not a financial advisor.

So i would highly recommend that you do your own research. I would really like to know your thoughts on alibaba in a comment below at what price would you buy the current dip? If you made it to this point in the video, i would like to say thank you. The support that this channel has been receiving lately is truly mind-blowing. If you have any suggestions for what i should cover next or any questions, please feel free to.

Let me know 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.