Trading Idea: Is Baidu close to Support?
Published on Friday, 23 November 2012 05:24 Written by TradersHuddle Wire
New York, November 23rd (TradersHuddle.com) - Shares of Baidu, Inc. (NASDAQ:BIDU) are trading very close to calculated support at $91.81 with price action closing at just $93.24 and placing the stock near levels where traders will start paying attention.
Baidu's stock range is defined by its calculated support defined at $91.81 and by the resistance level at $115.88, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.
Traders wanting to establish a position should pay close attention to Baidu's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $115.88 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.
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.