For Alibaba’s (BABA) $25 billion IPO, the biggest, most hyped public offering in history, the aftermath has been a dud. After hitting an intraday high of nearly $100 a share, the stock has traded as low as the $82 level. Now the shares may be ready to do an about face says Brian Shannon of Alpha Trends. “There’s some good signs buyers are starting to eat into the supply from the IPO.”

One of those signs is the volume weighted average price or more simply the VWAP which measures the average price the stock has traded at when adjusted for volume. Alibaba’s VWAP level, $90.50, is starting to stabilize according to Shannon. “We’ve spent almost the entire time below the volume weighted average price since it came public, meaning that there has been more aggressive supply. It was a huge offering and there's a lot of people still taking profits who were fortunate enough to get into the IPO.”

Once these profit takers get flushed out, Shannon says Alibaba shares could re-test the highs. “If the stock can get back and hold above the $91.50 level I think you are going to see a quick run back to the highs $100 a share.” The stock closed at $91.63 on Wednesday after our parent company Yahoo's (YHOO) better-than-expected third quarter results were buoyed in part by the IPO.

Investors will learn more about the health of Alibaba’s business on November 4, 2014 when the Chinese internet giant reports its first quarter as a public company.

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