BIDU closes above its opening price after recovering from early selling pressure
Baidu Inc. (BIDU) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
BIDU finished Tuesday at 170.28 gaining $1.61 (0.95%) on low volume, outperforming the Nasdaq 100 (0.34%). Trading up to $1.12 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BIDU as at Apr 16, 2019):
Tuesday's trading range has been $2.58 (1.52%), that's far below the last trading month's daily average range of $4.11. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BIDU.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the stock managed to close higher but below the previous day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on February 12th, BIDU gained 2.10% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
The market managed to close back above the 50-day moving average at 169.88.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 167.40 where further sell stops might get triggered. As prices are trading close to April's low at 166.92, downside momentum could accelerate should Baidu mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Baidu. Out of 417 times, BIDU closed higher 56.35% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.64% with an average market move of 1.09%.