Baidu Inc (NASDAQ:BIDU) and Google Inc (NASDAQ:GOOG) are undoubtedly two internet market leaders. When someone searches the internet for something in the U.S. they say ‘just Google it’. Google Inc is not only a household name, it has also over taken the entire search market surpassing Microsoft Corp’s (NASDAQ:MSFT) search engine called Bing and the old search engine leader Yahoo! Inc (NASDAQ:YHOO). Google Inc has also moved into different areas of technology including cell phones, online books, and countless computer applications.

Baidu Inc is viewed by many as the Google of China. It is the most popular search engine in China beating out Google Inc by a large margin in that country. It is important to realize that China’s population does have more than 1.2 billion people and the market is growing. Recently Google Inc and the Chinese government have not seen eye to eye when it comes to proprietary technology secrets and censorship. Please realize while China is now the worlds new growth engine it still a communist country and the government controls most of the media content. Baidu Inc has capitalized from this recent conflict from Google Inc and the Chinese government.

Technically speaking both stocks are in technical uptrend’s. However, Baidu Inc is at a new all time high with major resistance at 550.00, 575.00, 588.00, and 600.00 levels. The stock is extended and overbought from it’s January breakout, therefore, each of these levels could see pullbacks.

Google has rallied throughout February and March trading above it’s important daily 50 and 200 moving averages. However, the 585.00 level is a very good short term resistance area for Google Inc stock. The next important near term resistance levels for Google Inc are 592.00, 605.00, and 615.00. The stock is also well below it’s January high of 629.00.

These are the pros and cons of Google and Baidu Inc. Currently both stocks could be poise to pullback due to a short term overbought and extended move on the charts.

Nicholas Santiago
Chief Market Strategist