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NEW YORK (TheStreet) -- Alibaba (BABA) - Get Free Report shares are up 0.45% to $94.30 in afternoon trading on Friday and is the subject of today's 'Chart of the Day' analysis. 

Alibaba shares have been climbing for three straight sessions and analysts at Bernstein initiated coverage on the Chinese online retailer with a "high-conviction outperform" rating and $120 price target that represents a potential 27% upside from the stock's current price.

The firm believe that analysts and investors are underestimating the company's gross merchandise volumes its websites can generate as well as the company's ability to monetize that merchandise volume.

Insight from TheStreet's Research Team:

Bryan Ashenberg and Bob Lang have identified Alibaba as the Chart of the Day. Here is what Ashenberg and Lang had to say about the stock's chart:

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Wednesday's price action was telling, finally moving over some resistance at $90. That sets up a move toward the gap at $98 for a great return from here. All gaps eventually get filled.

What's notable is the big increase in Relative Strength, which had been lacking for months as the stock built a low level base. The momentum indicators show an overbought condition that we have not seen since last fall, and that may be cautionary -- yet in terms of trends and momentum, we like this for a play on confirmation.

DISCLOSURE: Trifecta Stocks has no position in BABA. This Alert is a technical analysis of the company's chart, and we are not taking any action in the stock at this time.

- Bryan Ashenberg and Bob Lang, "Chart of the Day: BABA," originally published 5/21/15 on

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