Baidu Inc. - (BIDU) - June 2, 2022 (Daily Stock Report)

by SIACharts.com

 

 

It appears that a long-term downtrend in Baidu (BIDU) shares finally bottomed out about a month ago with a successful retest of $100 round number support. Since then, the shares have started to bounce back, retaking their 50-day moving average and snapping a short-term downtrend line. Most notably, this week, the shares have snapped a long-term downtrend line, signaling that a new recovery trend has commenced.

Initial upside resistance may appear near the $150 round number, followed by previous peaks near $160, $170 and $180 on trend. Initial support appears at the 50-day average near $130.

With Chinaā€™s economy starting to reopen, some Chinese ADRs have started to attract renewed interest, including internet and online shopping-related companies like Baidu (BIDU). After spending most of a year stuck in the red zone, BIDU has roared up the relative strength rankings in the SIA NASDAQ 100 Index Report and yesterday it returned to the Green Favored Zone for the first time since March of 2021. Yesterday it finished in 22nd place, up 9 spots on the day and up 63 positions in the last month.

 

Baidu (BIDU) has been in a long-term downtrend of lower highs since March of 2021. In the last few days, however, it has started to show signs of life, completing bullish Double Top and Spread Double Top breakouts. So far this appears to be an upswing within an ongoing downtrend but currently the shares are bumping up against trendline resistance near $142.80 where a breakout would signal the start of a new recovery play.

Should that occur, next potential resistance may appear near $167.30 based on a horizontal count, then the $175.00 to $181.10 area where a horizontal count, round number and downtrend line converge. Initial support appears near $129.30 based on a 3-box reversal.

With a bullish SMAX score of 9, BIDU is exhibiting strength against the asset classes.

 

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Total
0
Shares
Previous Article

Tech Talk for Thursday June 2nd 2022

Next Article

The Lowdown on Uranium, Lithium & Carbon w/ Nicolas Piquard

Related Posts
Subscribe to AdvisorAnalyst.com notifications
Watch. Listen. Read. Raise your average.