Alibaba Says Singles Day Sales Top $70billion, Setting New Record
Alibaba share price is up today as the company says it has smashed its Singles Day sales record with orders topping $70 billion on its platforms. This value is 20 times more than the two-day Prime Day sales done by Amazon.
November 11 (11/11) is tagged Singles Day in China, and Alibaba marks it with an online sale spread over four days as a prelude to the Black Friday and Cyber Monday online shopping festival. This year, sales were expected to jump as millions of lockdown-weary consumers all over the world extended their now-regular online shopping habits to the Alibaba platform.
Hefty discounts are a hallmark of the Alibaba’s Singles Day shopping spree. The 2020 version is the first time that this event will hold in a pandemic era. Previous editions had been marred by slow delivery of items as orders overwhelmed delivery capacity. It would be interesting to see how logistics companies that are just getting back to their feet in China after the extended lockdown period cope with the order influx.
Alibaba is trading flat on the day as it attempts to recover from two days of steep losses on the NYSE.
Technical Outlook for Alibaba
Following the completion of a steep bearish flag formation at the 266.44 support, today’s candle opened with a downside gap but is attempting to cover this gap. This attempt has stalled, as 266.44 now acts as a resistance in a role reversal of its previous function. If buyers fail to push prices above this resistance, this could open the door for sellers to attempt a move to 257.79 (July 8 high and July 21 low). Below this level, 241.20 and 229.34 may serve as additional downside targets.
On the other hand, if sentiment on the stock improves from the Singles Day sales figures, and 266.44 is overcome, we may see a push towards
279.46 (September 2 and November 9 lows) and possibly 290.20. 302.57 will then be the only barrier between sellers and the 2020 high at 319.50 if they overcome 290.20.