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Baidu (BIDU) Entering Resistance Area

Baidu $BIDU has been rebounding after completing a mini-double bottom. We saw this a couple of weeks ago and noted that there is upside that might be limited to $180.

Baidu (BIDU) Completes a Small Price Bottom; Upside will be Challenged Around $180

BIDU Daily Chart

(click to enlarge)

- Price didn't go straight up, but rather chopped a little before extending higher above the double bottom.
- As price approaches $175 a share, it will be tested by a falling channel resistance as well as a previous support pivot that might act like a resistance pivot.
- We should also note that in a bearish market, the RSI will tend to hold under 60, which has been the case for BIDU.
- Recent market appetite could extend BIDU's rally past $175 resistance area, but I would still keep my bullish outlook to $180 in the short-term.
- I am just not convinced that the overall market has bottomed. Or even if it HAS bottomed, I am not convinced that it is back to a bullish mode.
- Perhaps, the market is tentative and will be choppy.
- Before getting evidence that the general market has returned to bullish mode, I would curb my bullish outlook for BIDU.
- Now, if $180 does not hold as resistance, I think price can push towards $200, with the upside limited to $210. 
- On the other hand, if $160 fails to hold as support, BIDU is likely going to continue its bearish push towards the next common support around $140.
- So essentially, in the short-term, the $160 and $180 levels are key support and resistance levels.

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