Alibaba Falling Back Into Trading Range
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Alibaba Group Holding Ltd (NYSE: BABA) shares were trading lower by $1.71 at $84.43 in Friday's session. After posting solid gains on Wednesday and Thursday, rallying from Tuesday's close of $82.21 to Thursday's close of $86.14, the issue coming back into its former trading range.
The issue, which was boosted by rumors of further collaboration with Yahoo and as well the launch of Alipay Wallet, reached $87.69 in Thursday's session before ending the session at $86.14. In addition, large buy imbalances off the opening bell exerted more preemptive buying in the after-hours and pre-market sessions.
So far, it has declined to $84.34 in Friday's session and has not been able to distance itself from that level. If the decline continues over the next few days, the next identifiable support level may be at Wednesday's low ($83.07).
It should noted that after above average volume on Wednesday's and Thursday's rallies, today's decline is not taking place on as heavy of volume.
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