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Fan Yang

Baidu (BIDU) Respects Key Level and Confirms Bullish Bias

Recently, we noted that Baidu $BIDU fell to a key pivot area around $240. We suggested that if BIDU can hold above $240, it could confirm a bullish outlook.

Baidu Daily Chart

(click to enlarge)

Bulls Remain in Control:
- The daily chart essentially shows that price action has been ranging since July 2017.
- We did have a bullish breakout in May this year, but price retreated sharply to contest the bullish outlook.
- The $240 was a confluence of support. 1) this is the middle of the range 2) the 200-, 100-, and 50-day simple moving averages (SMAs) are here right now. 
- Furthermore, if the market is to maintain bullish momentum, it should hold the RSI above 40 - and it did. 
- We can see that after a week of consolidating around $240, price started to rally sharply. 
- Unless a dip closes price under $240, we should anticipate upside to at least $284, which is the previous 2018-high. We should probably limit the bullish outlook to $300 for now. 

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