What's going on moon gang, i hope you're having an awesome day in this video. I will be explaining why i personally believe that we are coming up on an excellent opportunity to invest in alibaba. I will also be doing a technical breakdown of the stock, so i can better highlight the specific price levels at which i would consider buying. 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, my goal is 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. Here are three fundamental reasons. Why you should consider investing in alibaba? If you want to check out this article yourself, it can be found for free on investor place. A few short weeks ago, everything looked fine for alibaba earnings were approaching, as was the singles day event and and group's ipo.

Unfortunately, while things were looking good for the company, the catalyst haven't panned out it wasn't the election syncing alibaba. It was the news that the ant ipo was being pushed back for. Those of you who don't know ant operates alipay, which is the world's largest mobile and online payments platform, and alibaba owns one-third of the company due to the chinese regulatory issues. The highly anticipated event has been delayed and to make matters worse.

Chinese regulators recently drafted anti-monopoly guidelines which had a negative impact on alibaba. If you ask me, there is quite a fight going on between alibaba and the chinese government, so why own the stock reason number one is the catalysts when the ant ipo was shelved. The buys turned negative for alibaba stock on november 5th, alibaba reported earnings, beating fiscal q2 estimates by 58 cents per share. Revenue was in line, but grew 30 percent year over year singles day set another record with gross merchandise value hitting roughly 75 billion dollars.

That's almost double what alibaba did last year at 38 billion, despite both of these amazing results, the stock is struggling to rally, which is an opportunity for investors. Reason number two is that alibaba has great assets for those of you who don't know china is huge. It is roughly four times the population of the us, and it has a middle class that is booming, so alibaba obviously has a massive consumer base to utilize, and that's exactly what the company does. Alibaba is not only alibaba.com, it also has tmall, which is the most popular e-commerce site in all of china, and on top of that it owns one-third of ant.

Ant was supposed to be a record-breaking ipo, but was pulled at the last minute because the company's proposed offering might no longer meet the requirements for listing, as i mentioned before, i think there's something going on between the chinese government and alibaba. But my main point here is that alibaba is in control of a few things that are extremely important to the gigantic chinese economy, which brings me to reason. Number three alibaba stock has growth at a time where most companies are struggling for growth, consensus estimates call for robust growth. This year, analysts expect 46 revenue, growth and 36 earnings growth, which is truly impressive.

Alibaba generated 73 billion dollars in sales in 2019, and it's forecasted that they will register sales of 139 billion in 2021.. The fact that alibaba is looking to double their sales within two years. They have the upcoming ant ipo catalyst and, on top of that, they own assets that have access to a huge consumer base. All this is exactly why i'm fundamentally interested in investing in the company.

Now we just need to pick the perfect price on the screen. Now is alibaba's daily chart alibaba trades under the ticker b-a-b-a and closed out the second week of november by dropping 1.4 percent. The stock is currently at 260 dollars and thus far in the month of november, it is down 14.4 over the past week and month. It's down roughly 13, but from the start of the year.

Until now, it is up 23, as you can clearly see. Alibaba has not had the best time in november. This is partly due to the ant ipo being delayed, but i would argue that this sell-off was mainly prompted by the new anti-trust regulations from march of this year. Until november, alibaba has consistently been putting in higher lows and higher highs, and it even recently hit a new all-time high at 319.

But from there the bears pushed the stock below the recent high of 300 and even pushed it below the recent resistance support and trend line at 268.. As of the most recent trading day, the stock did find support at this trendline at 258.. If a bounce ensues from here, the first resistance would be a gain of 2.7 percent. After that, i would watch the high from mid-september, which would be a gain of 8.7 percent past, that we have 300, which would be a gain of almost 15 percent and, of course, from there is the all-time high, which would be a gain of 22 percent.

But if this bearish momentum continues, i would then be looking for a bounce somewhere between 241 and 246, which would roughly be a decline of 6.8. As things currently stand. I do favor this bullish case and i think the bounce will come sooner rather than later and to better explain why. Let me switch over to the four hour chart.

So not only is alibaba stock at the natural support of this trend line, but i'm also seeing bullish divergence in the rsi. Here's what i mean by that the stock made a new relative low, but the rsi didn't this commonly means that the sellers are becoming exhausted and a bounce, or at least a period of consolidation is close by now. This is by no means a perfect indicator, but it is one more piece of evidence on top of all the fundamental reasons that i explained as to why the stock should bounce sooner rather than later. Personally, i do not own any shares of alibaba, but i am looking to invest very soon, depending on how this situation plays out.

I might pick up a few shares around 255, but in all honesty, i'm looking to heavily invest in the region of support between 241 and 246.. If you were to fast forward years down the road, i truly believe that investing at these prices will have huge returns, as things continue to develop fundamentally and technically, with alibaba i'll make sure to keep you updated in future videos. Also, let you know when i finally invest in the company so make sure you have your notifications turned on thanks for watching. I truly hope that you found some value in this video.

Don't forget that these are all my own opinions and i'm not a financial advisor. So i would highly recommend that you do your own research. I would love to know your thoughts on alibaba in a comment below. Do you agree that we are coming up on an excellent investment opportunity, or do you think that i'm missing something, 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 and as a quick side note, 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, thanks for watching and until next time best of luck in the markets, you.