How An Institution Is Preparing For The Big Alibaba Rebound Play


Alibaba Group Holding Ltd -ADR (NYSE: BABA) has been slaughtered since October 2020 when it reached an all-time high of $319.32. The sharp decline has been partly due to poor U.S./China relations as well and Chinese regulators cracking down on the e-commerce giant and its CEO Jack Ma.

Since July 22 the decline in the stock has accelerated and although there has been some bounce plays for the bulls, the stock has become risky due to new out of China, when the U.S. markets are closed, causing Alibaba to gap down on four separate occasions. Gaps fill 90% of the time, however, so it is very likely Alibaba will trade back up to fill its highest gap near the $212 level in the future.

On Friday Alibaba slammed into a support level at the $155.50 level and bounced up slightly from it. The support level was created back in 2019 and could mark the pivot point for Alibaba’s rebound.

After hours, just before trading closed for the weekend an institution(s) purchased a whopping $611.71 million worth of common shares of Alibaba. It is likely the trader chose to purchase common shares as opposed to options to avoid time decay if Alibaba trades sideways or lower before rebounding back up to fil the gaps.

See Also: Is Alibaba Stock About To Rebound?

Why It’s Important: When a block trade occurs it indicates a hedge fund or institution has taken a position in common shares. A block trade always involves large sizing and is typically handled by a blockhouse privately and outside of the open market. Because block trades don’t happen on the open market the large size of the trades doesn’t create volatility in the stock being traded.

These types of purchase orders are made by institutions purchasing a large number of a security and retail investors can find watching for block trades useful because it indicates “smart money” has entered into a position.

The BABA Technologies Trades: Below is a look at the notable alerts, courtesy of Benzinga Pro:

  • At 6:24 p.m., a trader executed a block trade above ask of 1.6 million Alibaba shares at $160.98 per piece. The trade represented a $257.56 million bullish bet.

  • At 6:28 p.m., a trader executed a block trade above ask of 2.2 million Alibaba shares at $160.98 per piece. The trade represented a $354.15 million bullish bet.

BABA Price Action: Alibaba closed Friday’s session down 1.61% at $157.96.

See more from Benzinga

© 2021 Benzinga does not provide investment advice. All rights reserved.

Source: How An Institution Is Preparing For The Big Alibaba Rebound Play

*This is a free press release. Upgraded press releases are ad-free!

UK’s first fusion technology centre provides Yorkshire jobs boost

A ground-breaking new fusion technology facility, which has the capability to test components in the simulated conditions of a fusion power plant, is now open and operating in South Yorkshire.The Advanced Manufacturing Park in Rotherham was chosen by the UK Atomic Energy Authority (UKAEA) as the ideal location for the new 25,000 sq. ft. fusion…

Read Press Release

Funeral Service Held in Covina for Marine Killed in Afghanistan

A U.S. Marine Corps carry team transfers the remains of Marine Corps Lance Cpl. Dylan R. Merola of Rancho Cucamonga, California, Aug. 29, 2021 at Dover Air Force Base, Delaware. Merola was assigned to 2nd Battalion, 1st Marine Regiment, 1st Marine Division, I Marine Expeditionary Force, Camp Pendleton, California. (Jason Minto/U.S. Air Force via Getty…

Read Press Release

Consumers Find Influencer Role Increasingly Attractive

Axios, Sunday, September 26, 2021 4:39 PM Brands are throwing billions of dollars at online content creators, so the number of people looking to become influencers has exploded during the pandemic. “Takumi, a premier influencer marketing agency, received twice as many applications from people looking for representation in 2020 then it did in 2019,” per…

Read Press Release

Best Oculus Quest 2 accessories for 2021 – CNET

The powerful and affordable Oculus Quest 2 has brought virtual reality as close as it’s ever been to the mainstream. Facebook’s VR gaming system is cable-free, which is essential for having a great VR experience. While prices for it start at $300 for the 64GB version, it’s pretty bare-bones and doesn’t include anything beyond the VR…

Read Press Release

Clyde Edwards-Helaire Of The Kansas City Chiefs Remains Inconsistent

Kansas City Chiefs running back Clyde Edwards-Helaire is tackled by Los Angeles Chargers defensive … [+] back Nasir Adderley on Sunday, Sept. 26, 2021 in Kansas City, Mo. (AP Photo/Ed Zurga) ASSOCIATED PRESS The Kansas City Chiefs wanted to show their confidence in the scapegoat of the previous week’s contest. After fumbling the ball with 1:25…

Read Press Release

Why Canadian Conservatives Lost the Election

When they went soft on core principles, demoralized voters stayed home or voted for an upstart third party. NRPLUS MEMBER ARTICLE W hen Canadian prime minister Justin Trudeau called a snap election for this past Monday, the Conservative opposition had the chance to present a real contrast to his “woke” Liberal government. Instead, Conservative Party…

Read Press Release

How An Institution Is Preparing For The Big Alibaba Rebound Play - Click To Share

Share on facebook
Share on twitter
Share on reddit
Share on linkedin
Share on email
Share on whatsapp