BIDU finds buyers at key support level
Baidu Inc. (BIDU) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, BIDU ended Wednesday at 126.03 gaining $1.54 (1.24%), notably outperforming the Nasdaq 100 (-1.67%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BIDU as at Sep 16, 2020):
Wednesday's trading range has been $2.78 (2.22%), that's slightly below the last trading month's daily average range of $3.04. 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 lower than usual for BIDU.
After trading down to 124.47 earlier during the day, the stock bounced off the key technical support level at 124.49 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on September 3rd, BIDU gained 1.19% on the following trading day. Prices are trading close to the key technical resistance level at 128.28 (R1).
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
As prices are trading close to September's high at 129.03, upside momentum might accelerate should the share mark new highs for the month.
Among the two 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 405 times, BIDU closed higher 56.30% 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 55.06% with an average market move of 0.65%.