Bulls and Bears on the Trenches of Baidu

bidu New York, February 11th (TradersHuddle.com) - Shares of Baidu, Inc. (NASDAQ:BIDU) closed the trading day higher by $0.59 or 0.61% from its previous close. Baidu's price action formed what is considered to be a doji close, where the open and close prices are very close to each other, mainly signaling an indecision between buyers and sellers.

Baidu, Inc. (NASDAQ:BIDU) provides Chinese language Internet search services primarily in China and Japan. The Company offers algorithmic search, enterprise search, pay for performance and news, MP3, and image searches.

Baidu's trading range is defined by a trough, which marked calculated support at $95.30 and by a peak that set the resistance point at $113.56. These levels are closely watched by traders managing their positions.

Traders wanting to establish a position in Baidu or traders that are already holding the stock can use the doji close to their advantage, since the pattern present a short-term pause in the stock's price action. This pause results in an entry point for traders depending of which way the stock resolves this short-term indecision.

The Doji is an important candlestick pattern that provides information on their own and as components in a number of important patterns. Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns.

Any bullish or bearish bias is based on preceding price action and future confirmation. In the case of Baidu, given that the stock finished the session higher, bulls should monitor their positions for confirmation that the stock will continue higher by taking its intraday high. Below a Doji illustration:

Related Articles

    Related Partner Headlines

      JIM CRAMER wants to work for YOU. JIM does the research -- YOU get email alerts each time he trades. JIM provides access to his actual portfolio -- YOU can use it to guide your portfolio strategy. Try Jim's Action Alerts PLUS for FREE!

      TradersHuddle Search

      Stock Search:

      Site Search:


      Technical Scans

      Recent Trading Ideas

      Latest Partner Headlines

      Stock Market

      o Dow Jones 17,646.74 ▼104.17 (-0.59%)
      o S&P 500 2,050.59 ▼12.78 (-0.62%)
      o NASDAQ 4,726.62 ▼36.61 (-0.77%)

      Dow Jones

      Company ID [INDEXDJX:.DJI] Last trade:17,646.74 Trade time:3:17PM EDT Value change:▼104.17 (-0.59%)

      S&P 500

      Company ID [INDEXSP:.INX] Last trade:2,050.59 Trade time:3:17PM EDT Value change:▼12.78 (-0.62%)


      Company ID [INDEXNASDAQ:.IXIC] Last trade:4,726.62 Trade time:3:17PM EDT Value change:▼36.61 (-0.77%)

      In The Wires

      Copyright © 2013 TradersHuddle.com. All Rights Reserved.