BIDU runs into sellers again around 135.90
Baidu Inc. (BIDU) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BIDU ended the week 2.8% higher at 134.57 after losing $0.61 (-0.45%) today on low volume, underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BIDU as at Feb 14, 2020):
Friday's trading range has been $1.82 (1.34%), that's far below the last trading month's daily average range of $3.70. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BIDU.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Even with a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
After having been unable to move above 136.30 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 135.90. The last time this happened on Monday, BIDU actually gained 2.24% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 138.50 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 133.23 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Baidu. Out of 101 times, BIDU closed higher 51.49% 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 57.43% with an average market move of 1.36%.