Alibaba Group Holding, an online store, share price was heavily penalized during may and is now in an oversold situation near to a solid support area at USD 57.40.

According to Surperformance ratings, the company constitutes an opportunity for a trading strategy. From a fundamental point of view, it usually posts better than expected financial statements as in 2014 and the enterprise valuation conciliates with its visibility. Moreover, analysts have lately revised upward their revenues' estimates and count on an EPS of USD 1.56 for this year (USD 2.81 estimate for 2016).

Graphically, in the mid-term, Alibaba is trading in a bearish trend. On the contrary, in the short term, the stock seems really oversold and this trend is reversed upon contact with the USD 57.4 area. The company should be able to confirm its increase in the next trading sessions. This support is a trading opportunity in order to anticipate a technical rebound towards USD 62.6.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Alibaba in a good timing. The goal will be fixed at USD 62.6 that is to say a potential gain of 9%. Investors might place a stop loss order at USD 55.9.