BIDU at Base of WedgeBIDU has been in a wedge pattern and is now at the lower end of the wedge. With earnings due on July 28, I believe this provides a catalyst for the stock to move back up to the higher end of the wedge or at least the 200 DMA at about $176 (up 9.47%). BIDU has beaten over the last three quarters with a positive stock reaction each time. I expect this to continue amidst overblown concerns of Chinese regulators.
BIDU trade ideas
Contrast Weekly vs Daily Timeframe OBV and RSI indicate a possible bounce to the upside. Keep eye on intraday for continuation downward or break to the upside. If you wanna play both sides a straddle or strangle option strategy two or three months out might be ideal. For a one sided trade check OTM (out-the-money) contracts and the Vol in the options contracts relative to the strike price before purchase - 220 and 125 or 200 and 140 strike price might be ideal. Also don't wait to long to purchases options contract, because as directional price movement becomes more apparent and as Implied Volatility creeps up the more expensive the options become.
Descending DragonHVF pattern seems to be developing. Consolidation has developed in the neck of the funnel (aka Channel). Thus far the Smart money seem to have pulled out already indicated by the OBV, and RSI hit overbought levels. Entry @167 for the short, or you could wait at the breakout of the orange funnel. Intraday BIDU as shown impulsive up spike but still has not broken channel resistances or support. OBV also appears to have bottom out so this could be a good setup for a Long position if price action breaks the channel to the upside and OBV begins to reach upward.
16.03.27 - BIDUPrice > 20EMA: yes
Price > 50EMA: yes
Price > 200EMA: yes
20EMA x 50EMA: yes
50EMA x 200EMA: -
Price resting at 200EMA
P3
HH HL
Retrace to S for entry TP at current pricing level above 200EMA
Earning are on the horizon (just like BABA and AAPL) i.e., more potential for volatility and momentum
TP: 188.07
Entry: 179.2
SL: 174.77
2RR