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Fan Yang

Baidu (BIDU) Retreated from Triangle Resistance after Earnings

Last week, we looked at Baidu (BIDU) as it retreated from a triangle resistance ahead of an earnings report. We noted that unless price is able to push back above 188, it looks ready to fall towards 180, and then 170. After earnings, price slid and closed around 175.17 to end the week. Let's first look at the charts.

Baidu (BIDU) Daily Chart 2/26
(click to enlarge)

- We should note the support/resistance pivot area just above 170. 
- We might in fact find support above 170. If this is so and the RSI holds above 40, we might have a bullish development that will put pressure back on the triangle resistance and the 188 high. 
- In fact, if price bounces off 172 and then comes back up to 188, I would not respect the resistance and instead anticipate a bullish breakout.

Triangle Support:
- Now, if price continues to slide and falls below the triangle support, BIDU would be exposed to the 158-160 support, down to the 130-131 support area. 
- This bearish scenario would be even more clear if price starts to hold under 175 (middle of the current triangle angle).

BIDU Weekly Chart 2/26

(click to enlarge)

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