Alibaba (#ALIBABA) weekly special report based on 1 Lot Calculation:
E-COMMERCE: THE INDUSTRY
- THE GLOBAL E-COMMERCE MARKET IS EXPECTED TO TOTAL $6.3 TRILLIONS IN 2024. The global e-commerce market is expected to be worth $6.3 trillion this year, up from $5.8 trillion in 2023. This presents new possibilities for businesses to tap into new demographics and expand beyond local markets.
- E-COMMERCE SALES ARE EXPECTED TO GROW 8.8% IN 2024. This growth highlights the increasing consumer preference for online shopping. Businesses that embrace this trend now will be better equipped to thrive in a market that is rapidly moving away from traditional in-store shopping experiences.
- BY 2027, 23% OF RETAIL PURCHASES ARE EXPECTED TO TAKE PLACE ONLINE. By 2027, nearly a quarter of all retail purchases are projected to occur online, with the e-commerce market projected to surpass $7.9 trillion.
ALIBABA: THE COMPANY
- ALIBABA IS ONE OF THE LARGEST E-COMMERCE IN THE WORLD:
E-COMMERCE MARKET SHARE (COUNTRY) China is estimated to claim 52.1% of the global market, USA with 20.1%, UK with 3.4% and Japan with 3.3%. Rest of the world covers 21.1%.
E-COMMERCE MARKET SHARE (COMPANY) Alibaba (Taobao and Tmall) claimed 24.00%, while Amazon took up 13% of the global e- commerce market. JD.com claimed 9.20% of the market.
ALIBABA: NEWS AND EVENTS
- NEWS (FRIDAY, AUGUST 30): ALIBABA COMPLETES THREE-YEAR REGULATORY. Alibaba has completed a three-year regulatory "rectification" process following an antitrust fine it received for monopolistic practices in 2021, China's market regulator said on Friday. This news could boost investor confidence in Alibaba.
- NEWS (TUESDAY, SEPTEMBER 10): ALIBABA UPGRADES HONG KONG LISTING TO PRIMARY STATUS. Alibaba announced the upgrade of its Hong Kong listing to primary status, allowing participation in the 'Stock Connect' program. According to Morgan Stanley, this move could attract up to $12 billion from the 220 million investors on mainland China's stock market within six months.
- CHINA ANNOUNCES MAJOR STIMULUS MEASURES TO STRENGTHEN ECONOMY: China's central bank will cut the reserve requirement ratio by 50 basis points and reduce key interest rates, freeing up 1 trillion yuan ($142 billion) for lending, while the government is expected to announce a new fiscal stimulus package, including 2 trillion yuan ($284 billion) in special sovereign bonds, to further boost the economy.
ALIBABA: RECENT PRICE ACTION
- ALIBABA IS ACTUALLY TRADING AT $111. Last week (23-27 October), Alibaba's share price increased by more than 20%, from $89 to $107, following both monetary and fiscal announcements to stimulate the Chinese economy. However, it could also decline.
- STOCK PRICE ACTION: THE STOCK HAS FALLEN BY ABOUT 65% FROM IT'S ALL-TIME HIGH OF $319. Alibaba was last trading around $111, and if a full recovery follows to all-time highs, the stock could see an upside of around ~187%. However, it could also decline.
Source: Fortrade MetaTrader 4
GRAPH (Monthly): January 2017 – September 2024
*Please note that past performance does not guarantee future results.
- ANALYSTS OPINIONS: Goldman Sachs forecasts $134. Citigroup forecasts $136.
#ALIBABA, September 30, 2024
Current Price:111
Alibaba |
Weekly |
Trend direction |
|
200 |
|
160 |
|
120 |
|
102 |
|
100 |
|
98 |
Example of calculation based on weekly trend direction for 1 Lot1
Alibaba |
||||||
Pivot Points |
||||||
Profit or loss in $ |
89,000.00 |
49,000.00 |
9,000.00 |
-9,000.00 |
-11,000.00 |
-13,000.00 |
Profit or loss in €2 |
79,468.12 |
43,752.11 |
8,036.10 |
-8,036.10 |
-9,821.90 |
-11,607.70 |
Profit or loss in £2 |
66,391.16 |
36,552.43 |
6,713.71 |
-6,713.71 |
-8,205.65 |
-9,697.58 |
Profit or loss in C$2 |
120,321.33 |
66,244.33 |
12,167.33 |
-12,167.33 |
-14,871.18 |
-17,575.03 |
1. 1.00 lot is equivalent of 1000 units
2. Calculations for exchange rate used as of 12:55 (GMT+1) 30/09/2024
There is a possibility to use Stop-Loss and Take-Profit.
- You may wish to consider closing your position in profit, even if it is lower than suggested one.
- Trailing stop technique could protect the profit.