Home > Short-Term Trader > BIDU: Triangle

BIDU: Triangle

November 8, 2010 Leave a comment Go to comments

BIDU's (Baidu Inc.) stock price has been constricting for over 2 weeks now, forming a nicely shaped triangle for the second time since the end of September. The previous triangle broke out, retested the breakout, and then shot higher on the heels of its earnings release. Since the prevailing trend is up and a sturdy 2-month  trend-line resides just under the bottom of the pattern, I anticipate another leg up. However, one can never rule out the fact that this type of pattern, which generally holds no bias, could lead to a breakdown. The stock is extremely overbought on the long-term and major market indices could use a rest, so maintaining flexibility, as always, will be prudent. The width of the pattern points to a minimum measured move of $8.50 in either direction.

 

Bidu triangle

 

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Categories: Short-Term Trader
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