BIDU/N trade ideas
HUGE TRIANGLEWe have a triangle pattern in development on weekly time frame and we might have breakoout soon.
I expect a continuation move to downside with target at round number 100.
BIDU little swing and long-term gain.BIDU have gone through the same 3.5 year pattern twice. Each iteration started with continuous growth.
Currently there is a consolidating triangle pattern, getting closer to an ultimate breakout.
It is highly unlikely for the breakout to go against the upward trend due to the fact that Baidu seems rather undervalued at the moment. P/E is just 12.4 against similar companies 30-50.
BIDU:A Good Oppotunity to BuyThe upper edge of triangle has been broken through and the market has pulled back the breached down trendline. Meanwhile the market is retesting the 0.618 fibo retracement.
So it is a good opportunity to buy long at 167-172 levels.
SL:below 155
TP1:200
TP2:215
TP3:ultimate target 250
BAIDU Watch The Break Out Expecting a bullish move to the red line after the breakout .
However, the price should be going "flat" to observe the supply that I highlighted on the price range box(the bearish bar) before continue to the next upper move.
BIDU - BAIDU "BINGO"- Trade...From what I have observed, I can see the same happen again.
...but - I'm also aware the the exact opposite could De- Bingo it.
As for now, I wait for a close above the dashed blue A/R line.
But yes, I am very bullish on BIDU.
P!
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.
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.
