Alibaba Pops And Drops: A Technical Breakdown

shares were trading higher by $0.61 at $86.00 in Thursday's session. It has gained nearly $4 since Tuesday's close ($82.21) and is well off its highs for the session ($87.69). Wednesday's rally was instigated by rumors of a joint domain between

and Alibaba, fueling speculation of joint venture between the two companies. There was also unconfirmed chatter that Alibaba may be interested in acquiring

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In Thursday's session, a huge buy imbalance sparked a higher open (today's open $87.03 vs. Wednesday's close of $85.39) and the follow through of the open to the issue all the way to $87.69. That level coincides with a trio of highs on February 18,19 and 20 from $87.27 to $87.89. Since reaching that elevated level, it has retreated to $85.83 and is attempting to remain in the $86 handle.