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How an Institution Prepares 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 $ 31

9.32. The sharp decline is due in part to poor relations between the US and China and Chinese regulators cracking down on the e-commerce giant and CEO. Jack Ma.

Since July 22, the decline in the stock has accelerated, and although there have been some bounces for the bulls, the stock has become risky due to new out of China, when the US markets are closed, which causes Alibaba to go down by four different occasions. However, holes fill 90% of the time, so it is very likely that Alibaba will switch back to fill its highest gap near the $ 212 level in the future.

On Friday, Alibaba slipped into a $ 155.50 support level and jumped a bit from it. The level of support was established back in 2019 and may mark the turning point for Alibaba’s rebound.

After hours, just before trading closed for the weekend, an institution (s) bought as much as $ 611.71 million in shares in Alibaba. It is likely that the trader chose to buy common stock as opposed to options to avoid expiration if Alibaba trades sideways or lower before striking back to clear the gaps.

See also: Is the Alibaba stock about to return?

Why it is important: When a block trade takes place, it indicates that a hedge fund or institution has taken a position in shares. A block of flats always involves large sizes and is usually handled by a block of flats privately and outside the open market. Because block trading does not take place on the open market, the trading size does not create volatility in the stock being traded.

This type of purchase order is executed by institutions that buy a large number of securities, and retail investors may find it useful to look for blockchain because it indicates that “smart money” has entered into a position.

BABA Technologies handles: Below you can see the remarkable alerts, courtesy of Benzinga Pro:

  • At 6:24 p.m., a trader completed a block trade of 1.6 million Alibaba shares at $ 160.98 per piece. The trade represented a $ 257.56 million stake.

  • At 6:28 p.m., a trader completed a block trade of 2.2 million Alibaba shares for $ 160.98 per piece. The trade represented a bullish effort of $ 354.15 million.

BABA price action: Alibaba closed Friday’s session down 1.61% to $ 157.96.

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