Monday, October 10, 2011
BIDU Has Reached Resistance, Now What?
In looking at the technical analysis on three month chart, there seems to be a resistance level around $126. In early morning trading, BIDU was able to quickly reach this resistance, but it could not break it and slowly declined throughout the day. I would think that BIDU has met with resistance at around $126 and was not able to break it for now. There is always a chance for this resistance to break which would allow BIDU to continue to rally into $130s range. However, I think BIDU will start weakening from $126 and eventually go back down below $105. Let's examine BIDU closely this week to see which direction it will take. What is your prediction on BIDU next several weeks? Will it continue to rally past $130 or will it be met by selling pressure?