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Baidu (BIDU) Pulls Back Sharply After Bullish Breakout - Buy the Dip?

Baidu $BIDU has been consolidating since October, but was in a bullish breakout this week as we can see on the daily chart below.

BIDU Daily Chart

(click to enlarge)

Breakout and Pullback:
- The daily chart shows a market that turned sideways after a bull run.
- But after holding above $210 a couple of times, price eventually pushed into a new high around $284 this week.
- However, at the end of the week, price retreated sharply. 
- This pullback could present a buy-on-the-dip scenario. 
- We should monitor the $240-$245 area for support.
- This was the central area of the broken range, and is where the 200-, 100-, and 50-day simple moving averages (SMAs) reside.
- Furthermore, we should monitor for support if the RSI approaches 40. 
- If the RSI does indeed turn back up around 40, and price holds above $240, we still have a bullish outlook at least back towards the $284 area, with the prospect of pushing towards $300. 
- A break below $240 on the other hand would reflect a market that is still in consolidation mode. 

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