Attention Investors: Alibaba Just Found Resistance
Joel Elconin is the co-host of Benzinga's PreMarket Prep, a daily trading idea radio show.
Alibaba Group Holding Ltd (NYSE: BABA) shares are nearly unchanged in Tuesday's session. The issue, which has been attempting to recover from its beat-down after disappointing Q3 results, fell to as low as $87.36 last Thursday.
On Friday, after its near-$9.00 decline, it was able to find support in the $88.11 handle and rally to $92.00, before closing lower on the day at $89.08. That represented its lowest close since October 20, when it ended the session at $88.26.
Large buy imbalances over the past two trading days have pushed the issue back toward its recovery high at $92.00. However, it was turned back at $91.66 on Monday and $91.72 on Tuesday, thus, reinforcing the importance of $92.00 as a key resistance level moving forward.
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