To The Moon

Alibaba's ( $Alibaba(BABA)$ $BABA-W(09988)$ ) stock has surged by 18% since my last analysis, driven by the release of its advanced AI model, Qwen 2.5, which the company claims surpasses DeepSeek and OpenAI.

In this analysis, I will provide an update on Alibaba's latest stock price movement, driven by the recent Reuters headline announcing the release of its new AI model, which the company claims surpasses DeepSeek.

Additionally, I will review the performance of the DLCs since the article one week ago.

Update to Alibaba prices (using BABA chart as Hong Kong market is closed now at the time of writing)

• Higher Swing Lows: The chart shows a pattern of higher swing lows, indicating increasing buying pressure and a strengthening bullish trend.

• MACD Indicator: The MACD is on the verge of a bullish crossover, which typically signals a potential upward momentum and a buying opportunity.

• Resistance Level: A key resistance level is identified at 118. Breaking through this level could confirm further upward movement.

• Market Sentiment: The overall technical indicators suggest a positive market sentiment, with potential for continued growth if the bullish signals hold.

I made a video on BABA yesterday on my analysis too https://youtu.be/mwbaIEyADfA

DLC performance

• Price Increase: The Alibaba 5x Long DLC ( $Alibaba 5xLongSG250904(DISW.SI)$ ) saw a significant price increase of 50.20% from last close, reaching 0.066.

• Underlying Asset Performance: The underlying asset, Alibaba (9988.HK) is not trading today as Hong Kong market is closed for Chinese New Year. However, traders are still able to trade into price movement of Alibaba using DLCs under SGX.

• Recent Performance: Over the past five days from 21 Jan posting, the DLC price increased by approximately 100%, indicating strong bullish momentum.

While Hong Kong market is closed, one can still tap into Alibaba price movement….

• Leveraged Nature: DLCs (Derivative Linked Certificates) offer leveraged exposure, which means they can amplify both gains and losses. This allows traders to potentially achieve higher returns compared to direct investments in the underlying asset, though it also increases risk.

• Extended Trading Opportunities: One significant advantage is the ability to trade DLCs on the Singapore Exchange (SGX) even when the Hong Kong market is closed. This provides greater flexibility and extended trading hours, allowing investors to react to market movements and news outside of the primary market's operating hours.

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For more information about DLCs, visit https://dlc.socgen.com/en/education/handbook 

Disclaimer: 

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. 

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.