Alibaba Pops And Drops: A Technical Breakdown

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show. Alibaba Group Holding Ltd BABA 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 Yahoo! Inc. and Alibaba, fueling speculation of joint venture between the two companies. There was also unconfirmed chatter that Alibaba may be interested in acquiring eBay. See Also: Here's Why Alibaba Stock Is Higher Today 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.