Ailbaba Group Still Holding Major Support Level

Alibaba Group

shares are trading lower by $1.51 at $81.47 in Wednesday's session. After holding up fairly well in Tuesday's rout in the market (up $.044), the issue has been lower since a brief rally off the open to $83.38. The catalyst for the decline may be worries about 437M offering for sale commencing March 18 as the shares will be available after lock-up expiry. Since retreating from the $100.00 level following a Q3 EPS beat ($0.81 vs Est. $0.75) but with lower revenue $4.22B vs. $4.45B), it has been attempting to put a bottom in place at the $80.00 level. The attempt to put in a bottom began with a pair of lows on March 3 ($80.03) and March 4 low ($80.17). In Tuesday's session, it found support ahead of that level at $80.65 and rebounded to close at $82.97. So far, in today's session, it has traded as low $81.19, but has not been able to stage a rebound beyond $81.62.