I’ve done write-ups on BIDU before. It’s a wild stock and let’s just leave it at that. Of all the issues in the stock world, BIDU is like trying to give a cat a bubble bath – “It can scratch ya!” As a trader of BIDU you really have to wait for the perfect time. One might be coming up very soon.
BIDU has been in a distribution phase for a while, trading sideways and just recently falling from its highs in the 180’s all the way back to $150, where it bounced. Bounced like one of those small rubber balls you get out of the 25-cent machines in Wal~ Mart. Over the last few days, BIDU has traded totally sideways. 180 is obviously a strong selling price. It has sold there hard two times previously; in December 2013 and one month later in January. Some of my students got stopped out from this move, including myself. I was expecting a bullish move BUT… it was a no go.
I plan on taking another stab at it. As I write this, BIDU is up after hours due to earnings. The 2/26 candle was a perfect doji with pretty high volume. IF BIDU opens above 185.50, there will be a lot of short traders ‘trapped’ more or less, being forced to buy to close. This could create some good buying pressure, a.k.a. a short squeeze. At that point BIDU would also be at an ATH (all time high).
The long term moving averages are bullish, the 10, 20 and 50 exponential moving averages on a weekly are also bullish, it would be into the top Bollinger Band on weekly, daily and monthly time frames.
Here’s How To Play It
My plan is to get in early. I’m thinking for both a swing trade and a day trade. Day trade, I’m going to set a limit buy order at 185.50 to see if those wicks get tested as old resistance / new support. Same thing for a swing. I’ll manage the position from there and see what happens. Regardless, a strong close above this level looks bullish for a target of 195.18 and then ultimately and potentially 227.35 based on some Fibonacci extensions. If it breaks though 187 tomorrow, 190 and 195 are very solid potentials.
Mitigate your risks, folks!
If you ever have any questions, please feel free to let me know! Reach out! I’m here to help anytime, Ladies and Gents!
