From the bottom of Mar'20 of 80$, BIDU saw a massive Wave 1 (subdivided into 5 waves). Note that Wave 3 was an exact 261.8% extension of wave 1 & wave 5 was almost a 161.8% extension of Wave 3. Then, a huge A-B-C correction, almost accurately to the 78.6% retracement of the bigger wave 1 (not coincidentally, the pre-pandemic level too!)
For the first time since July, the stock went above the 200d ema & has promptly pulled back. This might trade here for a while as there are many resistances above, but there are major support levels too. 175-176 is the next target, followed by 184 & 202
Invalidation level: 138-140 level
(PS: Alibaba(BABA) also forming a similar pattern but BIDU is more bullish. BABA badly broke the pandemic low, thanks to disappearance of a special someone)
Not an investment advice, I am long on both BIDU & BABA
For the first time since July, the stock went above the 200d ema & has promptly pulled back. This might trade here for a while as there are many resistances above, but there are major support levels too. 175-176 is the next target, followed by 184 & 202
Invalidation level: 138-140 level
(PS: Alibaba(BABA) also forming a similar pattern but BIDU is more bullish. BABA badly broke the pandemic low, thanks to disappearance of a special someone)
Not an investment advice, I am long on both BIDU & BABA