Alibaba Recovery Falters at Pivotal Hurdle Ahead of Earnings

(Bloomberg) — Investors in Alibaba Group Holding Ltd. are showing little signs of optimism ahead of the Internet giant’s third-quarter results later today.

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The stock slid immediately after the opening bell on Thursday, retreating from an area of resistance marked by the 50-day average and the upper end of a falling channel that has been in place since the August peak at HK$100.

Block activity in options — with a minimum size of 100 contracts traded — comprised mainly calls that were mostly executed at the bid, suggesting a bearish bias.

For bulls, prices will need to climb above November’s high of about HK$85 before the near-term bearish bias can be allayed.

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