If you’re trading Baidu (BIDU), you need to know this…. (September 03, 2014)
We’re looking at Baidu ( NASDAQ:BIDU ) here. This is an interesting chart; I mentioned to members yesterday that this stock is going higher. This was breaking out of a volatility squeeze here, so it just makes sense that when the stock had been in this kind of uptrend, drifting sideways; it just makes sense, that this big move here, on much heavier than average volume, is going to break to the upside; it’s going to move.
It did that today, however, this is really about as doji like as you can get, or for you AR people, you’ll know what I mean if you are one, more like a spinning top. It’s a long-tailed doji here, where right in the middle of the intraday range is where the stock opened and closed. It opened at 227.50; it closed at 227.45. A nickel difference on a $227.00 stock, that’s basically flat, nothing done.
The point is, this was like really, really high powered fighting between the bulls and the bears, big volume today as well as yesterday. Let’s look at it intraday, my bet is I know when it went up, in the morning, the stock goes up; up in the morning, down, and then it just kind of trickles in towards the end of the day.
So keep this in mind, on a stock that’s breaking out like Baidu ( NASDAQ:BIDU ) was yesterday, on a stock that’s breaking out like that, you will very rarely see the stock breakout, and then gap, and then and then fall right away, it just doesn’t really happen, it just doesn’t really happen. That’s not to say that every one is a continuation and that certainly is not the case here, but you can see the big volume in the morning, and then the stock trickled the rest of the day kind of like the S&P. So it was basically doing what the market itself was doing.
My point for mentioning this is very simple, this is up at resistance, it seems to me like the stock might have a little bit of backing and filling to do, but I look at this move yesterday more than today, I look at this move yesterday as a real power move. Today, the stock hits a new high here, I don’t know if it’s an all time high, certainly a 52-week high, let’s go ahead, since I mentioned it, and find out, yes, an all time high.
So it hit that thing, it’s hit an all time high just today, pulled back, that’s going to hit the pages of IBD as an all time high, you’re going to likely see this stock moving higher. I think this is a stock that you want to buy; buy lightly right now, maybe you’ll get an opportunity to buy it below 220.00; let’s say you’re going to buy this stock and just hold it for a year; you can thank me later.
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