By: Evan Lazarus
While I have covered this high-flying Chinese stock in the past many times (most recently on November 9th) I think we need to take another look at Baidu (BIDU) as it appears to be sitting on its trendline with a very bearish rounding top pattern developing. I think a clean break of this trendline will ultimately begin a leg down to retest the first level of support just below the $320 area, and then perhaps the ominous gap zone highlighted below.
Update: Today there is a positive catalyst that is pushing prices higher. Funny how this happens when the stock is sitting on support. Wait for price action to confirm this technical development before executing a trade.
