Above Resistance - Baidu

Published on Thursday, 02 September 2010 06:24 Written by Danny Miller

New York, September 2nd (TradersHuddle.com) - Shares of Baidu, Inc. (NASDAQ:BIDU) closed the trading session at $81.84 just above calculated resistance at $80.60 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

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 stock was trading in a well defined range with support at $76.04 and resistance at $80.60, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Baidu's stock is still near the broken resistance level, traders will be focusing on $80.60 to see if the stock holds the breakout without rolling over.