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Fan Yang

Baidu (BIDU) is Heading Lower; Look For Support Around $140

Baidu $BIDU is in a bearish trend and looks like it will be continuing lower after it broke below a support pivot around $166 and then reacted to it as resistance.

BIDU Daily Chart

(click to enlarge)

Bears in Charge:
- As we can see price is below the 200-, 100-, and 50-day simple moving averages (SMAs). The RSI has also been holding under 60 and tagging below 30.
- Meanwhile, price continues to make lower highs and lower lows. 
- The last confirmation of bearish control was resistance around $166, a previous support.
Next Support:
- I think the next key support is around $140. This is a previous support/resistance pivot area. 
- Note that this is the 2016-low . 
- If the weekly RSI and price also develops a bullish divergence here, we should anticipate a rebound towards $180. 
- A less likely, but still possible scenario is a dip towards the $100 low, or 2015-low.
- I will be waiting for $140 for the most part, but also prepare some dry powder for $100. 

BIDU Weekly Chart

(click to enlarge)

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