Baidu Closing in to Resistance

Published on Tuesday, 09 February 2010 09:23 Written by Christopher Lynn

New York, Feb 9^th (TradersHuddle.com) - Shares of Baidu, Inc. (NASDAQ:BIDU) are trading very close to calculated resistance at $450.99 with the current price action closing at just $443.23 placing the stock near levels that make it difficult to buy.

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 current stock range is defined by current calculated support defined at $406.73 and by the resistance level at $450.99, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Baidu, as the stock is well above support, however, as the stock pulls back towards $406.73 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $450.99 then traders will get an opportunity to enter Baidu stock by establishing a position as the stock moves to a higher range.