Alibaba stock seems out of its consolidation phase, it would be appropriate to open a long position on it to take advantage of the recovery.

The e-commerce website recently introduced on the stock exchange shows a strong profitability with a net margin of 37% in 2015. The relatively high valuation levels show the optimism and abundance of investors. In addition, analysts covering the value mainly keep a 'buyer' bias, and are aiming an appreciation of 14% on average.

Graphically, the stock has decline upon contact with the USD 119.1 resistance. A technical rebound seems under construction near to the USD 103.9 support. The 50-day moving average serves as a support to prices and halts bearish movements.

Thus, the timing seems opportune to buy Alibaba shares and take advantage of a probable recovery. The target price will be set at USD 115.1 and 119.1 by extension. Nevertheless, the strategy will require a stop-loss below the USD 99.7 support.