When I reviewed the indicators of Baidu (BIDU) in the middle of February, I said it was a problematic chart and wrote, "The lower high in January and the break of the November/December lows and the 200-day line does not instill confidence. Going long BIDU at current levels would require, in my opinion, a stop below $215 and that is more than I would be comfortable with right now. I would wait for BIDU to dip and make a higher low than the recent approx. $210 low." With hindsight we can see now (chart below) that BIDU reversed to the upside and rallied to break briefly above the January highs. A stop below $215 would have been fine and not executed, however, the rally reversed directions as quickly as it had bottomed. Let's check everything over again and see if we can provide a strategy.
In this updated daily bar chart of BIDU, below, we can see that the price of BIDU is below the declining 50-day moving average line and below the still rising 200-day line. Prices have been retesting the February low and seem to be at a critical juncture. The daily On-Balance-Volume (OBV) line has weakened since mid-March and tells us that sellers of BIDU have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is in a bearish mode below the zero line.
In this weekly bar chart of BIDU, below, we can see that prices closed below the rising 40-week moving average line last week and they could do so again this week. The weekly OBV line has turned down in the past few weeks and the weekly MACD oscillator is in a decline back to the zero line.
In this Point and Figure chart of BIDU, below, we can see three attempts to move higher. The pattern gives a downside price projection of $161 but there is some support in the $212-$208 area. A trade down at $204 would be bearish.
Bottom line -- the charts and indicators of BIDU are weaker than back in February. BIDU needs a repair team to come in to rehab the charts. Meanwhile, I would suggest avoiding the long side of BIDU until things improve.