Market Overview

Alibaba Rallies Off Earnings Beat: A Technical Look


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 higher by $6 (7.3 percent) at $86 in Thursday's session. The catalyst for the rally is better-than expected Q4 results for EPS ($0.43 vs. $0.42 estimates) and sales ($2.811 billion vs. $2.77 billion estimates).

The issue, which breached its major support at $80 on Tuesday by reaching $77.77, rebounded on Wednesday to close right at $80. The breach of $80 on Tuesday may have attracted a host of short-sellers as the issue made a new all-time low.

Those sellers were trapped today off the favorable report and added to the monster rally during the pre-market session that took the issue as high as $89.71. However, after a sharply higher open, it rallied to $89.29 before sharply reversing course. So far, it has declined to $85.07 and is attempting to re-enter the $86 handle.

Today's rally is taking place on much higher than average volume. It has already traded 44 million shares versus its 20-day average of 18.2 million with nearly fours left in the day.

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


Related Articles (BABA)

View Comments and Join the Discussion!

Bitcoin In The Middle East

Equity Values Are 'Quite High' According To Fed Chief Yellen