BABA Sees Strong +5.11% Return through Tickeron's Algorithmic Trading
In this article, we will analyze the performance of an AI trading robot called "Day Trader: High Volatility Stocks for Active Trading (TA&FA)" and delve into the earnings results of the company it traded, BABA.
Impressive Gain with BABA:
The AI trading robot, "Day Trader: High Volatility Stocks for Active Trading (TA&FA)," showcased its capabilities by generating a remarkable gain of +5.11% while trading BABA over the course of the previous week. This performance places it among the top performers in our robot factory. Such gains highlight the potential of AI-driven trading strategies to outperform traditional methods.
MACD Indicator Signals Positive Momentum:
The Moving Average Convergence Divergence (MACD) is a popular technical indicator used by traders to identify potential buy or sell signals. On June 02, 2023, the MACD for BABA turned positive, indicating a potential shift in momentum. By examining historical instances where BABA's MACD turned positive, we observe that the stock continued to rise in 37 out of 52 cases over the following month. This suggests a probability of approximately 71% for a continued upward trend in the stock.
Positive Earnings Report:
The latest earnings report for BABA, released on May 18, revealed earnings per share (EPS) of $10.71, surpassing the estimated value of $9.46. This positive surprise indicates strong financial performance and signifies that the company has been able to generate higher profits per share than anticipated by market analysts. With 24.52 million shares outstanding, the current market capitalization of BABA stands at a substantial $235.10 billion.
Analysis:
The performance of the AI trading robot "Day Trader: High Volatility Stocks for Active Trading (TA&FA)" in trading BABA demonstrates its ability to identify profitable opportunities in the market. The positive MACD signal further strengthens the case for a continued upward trend in BABA's stock price, with historical data indicating a 71% probability of such a trend.
Additionally, the positive earnings report for BABA highlights the company's strong financial health and its ability to generate impressive earnings per share. These factors, combined with the AI trading robot's success, may attract further investor interest in BABA.
It is important to note that while historical trends and technical indicators provide valuable insights, trading decisions should be made with careful consideration of other factors, such as fundamental analysis and market conditions. The performance of AI trading robots like "Day Trader: High Volatility Stocks for Active Trading (TA&FA)" serves as a testament to the potential of AI in enhancing trading strategies and achieving favorable results.
BABA sees its 50-day moving average cross bearishly below its 200-day moving average
The 50-day moving average for BABA moved below the 200-day moving average on September 19, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 11, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on BABA as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for BABA turned negative on September 08, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
BABA moved below its 50-day moving average on September 07, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for BABA crossed bearishly below the 50-day moving average on September 11, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BABA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for BABA entered a downward trend on August 29, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where BABA's RSI Indicator exited the oversold zone, of 36 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 52 cases where BABA's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BABA advanced for three days, in of 285 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BABA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.617) is normal, around the industry mean (17.208). P/E Ratio (19.960) is within average values for comparable stocks, (72.902). Projected Growth (PEG Ratio) (1.004) is also within normal values, averaging (2.306). Dividend Yield (0.000) settles around the average of (0.039) among similar stocks. P/S Ratio (1.875) is also within normal values, averaging (9.397).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BABA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
an online and mobile commerce company
Industry InternetRetail
BABA and
Correlation & Price change
A.I.dvisor indicates that over the last year, BABA has been closely correlated with JD. These tickers have moved in lockstep 85% of the time. This A.I.-generated data suggests there is a high statistical probability that if BABA jumps, then JD could also see price increases.
| Ticker / NAME | Correlation To BABA | 1D Price Change % | ||
|---|---|---|---|---|
| BABA | 100% | -1.22% | ||
| JD - BABA | 85% Closely correlated | -2.07% | ||
| DADA - BABA | 71% Closely correlated | -2.27% | ||
| BZUN - BABA | 69% Closely correlated | -0.92% | ||
| PDD - BABA | 68% Closely correlated | +0.79% | ||
| VIPS - BABA | 67% Closely correlated | +1.42% | ||
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