I recorded a video-review for Baidu (BIDU), a well-known and highly participated stock traded on the NASDAQ.
Hereunder is my video analysis for BIDU and below you can find the trading plan:
This stock is controlled by the bears on the longer timeframes and by breaking the 90 level such control has been confirmed. This does not mean that price cannot go higher but it will be pushed higher mostly by profit taking already started in the 86 area.
This stock hit a long-term (weekly) target at the 85.90 area and it is now due for a retracement higher into the 110 level. Conditions for Program Trading to start buying is that price moves above 98.80. Above that level longs will be ‘safe’ with a stop below recent lows (below 85.80).
For BIDU I was able to identify two bullish scenarios going forward:
Scenario 1: the stock trades the first traditional measured move finding support in the 92.70 area and then continues to move in traditional measured moves. So it hits the first target in the 102 area and then retraces again into the next support area at 97.70 and then continues higher into the 110 level.
Scenario 2: the stock trades the first traditional long at 92.70 (as above) and then keeps moving higher finding support in the 103.60 area and then continues higher into the 110 level.
Find hereunder the trading plan for BIDU:
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