BABA, JD and BIDU Forecast – Chinese Stocks Mixed in Premarket

BABA Technical Analysis

Alibaba has rallied a bit in pre-market trading as we are just a couple of days out from the earnings call on Thursday, but this is a parabolic runaway market. This is not a market that you want to be chasing at this point. And it would not surprise me at all to see a little bit of a pullback heading into the earnings call, because when you think about it, if you had a run from roughly $80 to 128 in just a couple of weeks, it’s not a bad idea to collect some of your profit. I think you could see that here. But regardless, you cannot be a buyer of this market all the way up in this area and chase this type of momentum.

JD Technical Analysis

JD.com looks like it’s going to continue to see a lot of back and forth. It is currently looking like it’s going to open up lower due to pre-market trading. But we don’t have an earnings call 6 March, so we may have sideways action here for a bit. This W pattern, of course, is something that people may be watching.

So, if we could break over the $43 level, then the market could go looking to 48, I think rather quickly. This is not a market I wish to be short of. I think every time we dip, there will be buyers willing to get involved.

BIDU Technical Analysis

Baidu is going to open up down and it is worth noting that this earnings call came out pre-market better than anticipated, but there were some questions about guidance. Really at this point though, I think Baidu is still in the process of bottoming, so a pullback here could test the 200-day EMA, which is basically at the top of this W pattern, and I think has enough market memory to open up the possibility of support there and a turnaround. I’d be willing to buy a dip in this stock as long as we can continue this same type of momentum.