Baidu Stock Pulls Back: Technical Levels To Watch

Benzinga2021-03-26

Baidu Inc.(NASDAQ:BIDU) shares lost ground Thursday amid tensions between China and major western countries over human rights concerns. Could this be weiging on the market?

Baidu shares ended the session at $204.57, down 14.47%.

Baidu Daily Chart Analysis:The stock looks to be forming what technical traders may call a “head and shoulders” pattern.

A head and shoulders pattern is considered to be a bearish reversal pattern, although it may not act in that manner.

The pattern occurs when the stock runs up and makes a high, consolidates and goes on to make a new high, falls and bounces near support before rising towards the initial high and eventually sells off below the initial support.

The stock has shown support previously near the $220 level, which it has struggled to cross below. This is a key area on the chart, possibly confirming the head and shoulders pattern.

Although the stock may be forming a head and shoulders pattern, it is trading above the 200-day moving average (blue), indicating the sentiment of the stock still hints at being bullish.

This is a potential area where the stock may find support in the future.

Bulls would like to see the stock break above the potential resistance line that the pattern brings about. This could invalidate the pattern and cause the stock to start moving upward above support.

Bears would like to see the stock close below the $220 level and have a period of consolidation. This may cause the stock to see a further stronger move to the downward side. This move may bring price down to near the 200-day moving average before it is able to find support again.

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精彩评论

  • labide
    2021-03-29
    labide
    Will go back soon
  • LowZackM
    2021-03-29
    LowZackM
    SELL IT IS GOING TO 150 
  • KATN
    2021-03-28
    KATN
    Looking good 
  • Barbarazhao
    2021-03-27
    Barbarazhao
    Fundamental is good. I believe it will rebound soon. It is good time to add more.
  • JimmyChua
    2021-03-26
    JimmyChua
    Think it's good buy if it's below 200
  • KaelynGoMoon
    2021-03-26
    KaelynGoMoon
    Great
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