Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Alibaba Group Holding Ltd BABA shares were trading lower by $2.81 (3 percent) at $87.19 in Thursday's session. This comes just a week after its earnings beatdown on January 29, falling from $98.45 to as low as $87.36 before rebounding to end the session at $89.81.
The following four days it found major resistance near the $92.00 level, peaking between $91.65 and $92.00 in four consecutive sessions. It appeared to be clinging to the $90.00 level on a closing basis, as it posted three consecutive closes between $90.00 and $90.61, Monday through Wednesday.
The consolidation period has been resolved to the downside in Thursday's session. After a lower open, it continued to move in that direction, breaching the former low of the move ($87.36), falling to $86.10 before rebounding back above $87.00.
During the Ebola induced selloff in the market back in October, the issue made three consecutive lows between $82.81 and $84.02.
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