ALIBABA STRONGLY BULLISH AS RESULTS BEAT ESTIMATES
Alibaba is currently trading at 179.65-higher by 2.75% as compared to the previous closing price. In the pre-market trading session, the stock was trading higher by 1.69%. The stock has continued gaining after the opening bell.
The company reported its fourth-quarter results before the market open on Wednesday. The Chinese e-commerce giant posted better-than-expected earnings due to growth in its core business and its diversification into cloud computing and other services.
The company generated adjusted EPS of 8.57 yuan for the fourth quarter. The EPS was above the market expectation of 6.5 yuan. Alibaba brought in 95.3 billion yuan in revenue for the fourth quarter. The revenue was above the consensus estimates of 91.58 billion yuan.
The Chinese e-commerce giant expects its revenue for the full fiscal year ending in March 2020 will hit over 500 billion yuan.
On the technical front, the current price is above the MA5. The current price is below the middle line of the Bollinger Bands but is heading upwards. The RSI is currently at 46.58% and suggests that the market can move in the upward direction.
TRADE SUGGESTION- LIMIT BUY AT 179.40 TAKE PROFIT AT 180.50 STOP LOSS AT 178.80