The Country Caller throws light on both stocks from a technical analysis perspective
Amazon.com Inc. (NASDAQ:AMZN) and Alibaba Group Holding Ltd (NYSE:BABA) are two of the biggest names in e-commerce. Both the companies have recently been doing really well and have stayed in the limelight for investors. While the Bellevue based e-commerce retailer has been the charm of Street houses after its second quarter earnings, its Chief Jeff Bezos has also taken the third spot in the world’s richest man ranking. The Country Caller has been actively pursuing on the hottest stock in current times.
Meanwhile, the Chinese e-commerce retailer has also been in the news lately. Considering its entry into newer avenues such as eSports, it is quite evident that Alibaba Group is up for something bigger in the future. We wait for the numbers due later this month, while we have continually discussed our bullish stance on the stock. Our views are complimented by those of renowned brokerages such as Morgan Stanley, who reckons a very bright future of the company. While positive catalysts exist for both of these rivals, The Country Caller throws light on both stocks from a technical analysis perspective.
Amazon.com Inc.’s stock currently appears to be in a neutral state, while we expect the bulls to take lead in a few more sessions. The 15-day RSI hints a Neutral scenario while the stochastic and oscillators also hint bull friendly conditions. The current bullish trend is yet to gain strength, however, the bulls are dominant.
Major price level for Amazon stock is $764.72, a break above which may lead to $768.86 and $776.85 levels, respectively. Major support resides at $756.73 level, if prices go below this level, then we may be eyeing $752.88 and $744.89 levels, respectively. We maintain our bullish stance on Amazon.com.
Alibaba Group Holdings stock seems to be approaching the oversold region, and we reckon it is a good time for fresh positions. The 14-day RSI currently hints bull friendly conditions, whereas the other indicators complement the notion. The bulls do not seem to have much momentum left with them.
Major price level for Alibaba stock is $84.46, a break about which will push to $85.11 and $86.54 levels, respectively. Major support resides at $83.03, if price plummets below this level then we may be eyeing $82.25 and $80.82 levels, respectively. Overall, we maintain a bullish stance on Alibaba Group Holdings.