Alibaba Shares Still Holding Major Support Level
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.
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