BIDU closes lower for the 3rd day in a row
Baidu Inc. (BIDU) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BIDU ended the month 12.52% higher at 119.89 after losing $1.40 (-1.15%) today, significantly underperforming the Nasdaq 100 (1.96%). Trading $1.63 higher after the open, the market was unable to hold its gains as the bears took control ending the day below 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 Jun 30, 2020):
Tuesday's trading range has been $2.56 (2.13%), that's below the last trading month's daily average range of $3.41. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower 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. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on June 24th, BIDU actually gained 1.94% on the following trading day.
Prices are trading close to the key technical support level at 119.40 (S1). After having been unable to move above 122.35 in the prior session, Baidu ran into sellers again around the same price level today, failing to move higher than 121.98.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the close-by swing low at 118.52 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Baidu. Out of 221 times, BIDU closed higher 53.85% 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 58.37% with an average market move of 0.73%.