Fundamentals:
From Feb. 2016 to Nov. 2020, BABA increased over 400%. The e-commerce giant Alibaba increasingly grew until it was hindered by changing regulations and laws. Primarily Beijing’s anti-monopoly regulations and the Holding Foreign Companies Accountable Act (HFCAA).
On November 11th, 2020: Beijing announced anti-monopoly regulations, sparking a sell off due to concerns of hindered future performance
The Holding Foreign Companies Accountable Act (HFCAA) requires certain companies establish that they are not owned or controlled by the Chinese government. A company must make this certification if the Public Company Accounting Oversight Board is unable to audit specified reports because the company retained a foreign public accounting firm not subject to inspection by the board. If the board is unable to inspect the public accounting firm for three consecutive years, the corporation’s securities are banned from trading on a national exchange.
On May 20, 2020, HFCAA passed the United States Senate, passed the House on December 2nd, 2020 and finally signed into law on December 18th, 2020.
However, investors can now breathe a sigh of relief as Chinese authorities have stated they are working on ways to give U.S. regulators full access to audit reports of more than 200 companies listed in the U.S. Q2 2022. Leading to the rebound we see today.
Technicals:
Price has bounced off the December 2016 support on March 7th coinciding with BB/ADP oversold conditions
1D: Price is consolidating under resistance so further upside is expected
3D: Positive MACD as of March 22nd
3D: Bearish Divergences RSI, Stoch, CCI, ADP
1W Bearish Divergences: RSI, OBV, VWMACD, CMF, MFI, ADP
1W MACD flipped positive March 14th & PSAR Flipped positive on March 28th, 2022
1W Bullish engulfing candle indicating a reversal from the downtrend
1M Bullish Harami candle formed with large buy volume
I’m anticipating further upside to the .618 Fib at $190
From Feb. 2016 to Nov. 2020, BABA increased over 400%. The e-commerce giant Alibaba increasingly grew until it was hindered by changing regulations and laws. Primarily Beijing’s anti-monopoly regulations and the Holding Foreign Companies Accountable Act (HFCAA).
On November 11th, 2020: Beijing announced anti-monopoly regulations, sparking a sell off due to concerns of hindered future performance
The Holding Foreign Companies Accountable Act (HFCAA) requires certain companies establish that they are not owned or controlled by the Chinese government. A company must make this certification if the Public Company Accounting Oversight Board is unable to audit specified reports because the company retained a foreign public accounting firm not subject to inspection by the board. If the board is unable to inspect the public accounting firm for three consecutive years, the corporation’s securities are banned from trading on a national exchange.
On May 20, 2020, HFCAA passed the United States Senate, passed the House on December 2nd, 2020 and finally signed into law on December 18th, 2020.
However, investors can now breathe a sigh of relief as Chinese authorities have stated they are working on ways to give U.S. regulators full access to audit reports of more than 200 companies listed in the U.S. Q2 2022. Leading to the rebound we see today.
Technicals:
Price has bounced off the December 2016 support on March 7th coinciding with BB/ADP oversold conditions
1D: Price is consolidating under resistance so further upside is expected
3D: Positive MACD as of March 22nd
3D: Bearish Divergences RSI, Stoch, CCI, ADP
1W Bearish Divergences: RSI, OBV, VWMACD, CMF, MFI, ADP
1W MACD flipped positive March 14th & PSAR Flipped positive on March 28th, 2022
1W Bullish engulfing candle indicating a reversal from the downtrend
1M Bullish Harami candle formed with large buy volume
I’m anticipating further upside to the .618 Fib at $190