Alibaba found support today at the 50-day MA and a key 50% retracement
. The solid reaction exhibited in the mid-101 region highlights RSI
divergence and a bullish
engulfment or outside up-day. The move from the bottom of the range (82.87) to the top (120.00) was roughly 20 trading days. The current pullback has taken half the time and stalled exactly at the halfway mark (of the range). This type of symmetry suggests that Tuesday's low represents a significant low, which puts the 111.40 level back in play. Provided global markets continue to stabilize, BABA should be able to reach 115 then 120 further out. The amount of time taken to reach these targets will determine whether BABA is entrenched within a range or breaking out to new highs.