Baidu, Inc. provides Internet search services in China and internationally. It operates through two segments, Baidu Core and iQIYI. The Baidu Core segment offers products for uses, while the iQIYI segment provides Internet video streaming services.
Take a look at the 1-year chart of Baidu (NASDAQ: BIDU) below with the added notations:
Over the course of the past 2-3 months, BIDU has formed an important level to watch at $175. The mark was support multiple times towards the end of 2018, and now it is acting as resistance on rallies back up to it.
The Tale of the Tape: BIDU has a key level at $175. A trader could enter a long position on a break above that level with a stop placed under it. However, if traders are bearish on the stock, a short trade could be made instead on a rally back up to $175.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT