It was “the” IPO to own this year.
You know how you get those “Oriental Trading” magazines in the mail? Where you can buy 250 bouncy balls for 5 bucks?
Alibaba is like that, except on a massive scale.
And after all that IPO hype, the stock ran from 100 the first day it traded and has fallen into a range since.
This chart is a classic IPO base and break pattern. 90 is an obvious level that if broken will drive the stock to attempt to retake 100.
I would not be surprised if we saw a “shake and bake” kind of setup here, where the obvious level at 90 is breached, followed by a failed breakout and then a proper move higher.
Either way, as long as BABA holds 87 this is a very constructive chart.
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