Baidu: Deep Pullback to Key Support and a Golden CrossChinese stocks have been surging this year as investors embrace the country’s flourishing digital economy. However, one of its most established names hasn’t broken out yet: Baidu – “the Google of China.”
BIDU entered the current environment in a weak place after years of revamping its search and advertising business. However it’s reported strong results in the last four quarters. It also surged in June on a report that Tencent may increase its stake in Iqiyi , which is majority owned by BIDU.
BIDU has pulled back and digested a lot of its gains in the last two weeks. It’s returned to the $118-120 area where it’s consolidated and pivoted several times in the last year.
The stock also just had a “Golden Cross,” with the 50-day simple moving average (SMA) rising up and through the 200-day SMA. This can reflect a long-term change in momentum – potentially interesting in a stock that’s lost more than half its value since July 2018.
