Several Stock Spotlight names, including leading Chinese e-commerce play Alibaba (BABA), were pulling back to their recent buy points amid the weakness among top stocks in the stock market today.
Alibaba fell 0.3% and is trading just above the 201.60 entry in a double bottom. Shares broke out on May 29, but gains didn’t start to pile up until June 1. After rising as much as 5% from the entry, shares have given back the entirety of that advance amid this week’s over-3% decline.
Despite the recent weakness, the Leaderboard stock is holding up rather well. While hot new-issues iQiyi (IQ) and Huya (HUYA) have already fallen at least 20% off their recent highs, Alibaba has corrected just 5%.
Meanwhile, the key 50-day moving average line lurks about 4% below the current price.
Will This Business Software Leader Hold Up?
ServiceNow (NOW) traded just above a 176.66 flat-base entry on Friday afternoon, according to MarketSmith chart analysis. Shares declined as much as 4.3% early Friday before paring those losses to about 2%. The stock also briefly fell below its 50-day line before rebounding.
Just two days ago, the stock edged into new high territory, underscoring the volatile nature of the current market environment.
Amid a seven-day losing streak, Grubhub (GRUB) has given back much of the stock’s 13%-plus rise from a double-bottom buy point of 105.78. If the stock were to fall all the way back to its buy point, that would trigger a round-trip sell signal.
The stock’s relative strength line advanced into new highs last week, signifying the stock’s substantial outperformance vs. the broad market.
Keep in mind that Grubhub’s recent structure is a later-stage base, which is more likely to fail than earlier-stage formations.
