Market Overview

Alibaba Shares Still Holding Major Support Level

Share:
Related BABA
PreMarket Prep Recap, March 21: We Haven't Seen A 2% Correction Since The Election
Alibaba's Under-The-Radar Technical Breakout

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 $1.51 at $81.47 in Wednesday's session. After holding up fairly well in Tuesday's rout in the market (up $0.44), the issue has been lower since a brief rally off the open to $83.38.

The catalyst for the decline may be worries about $437 million 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. $0.75 estimates) but with lower revenue ($4.22 billion vs. $4.45 billion), 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 had not been able to stage a rebound beyond $81.62 at time of writing.

Posted-In: Pre-market outlookTechnicals Intraday Update Movers Trading Ideas

 

Related Articles (BABA)

View Comments and Join the Discussion!