The Chinese internet search engine company Baidu (BIDU) is poised for a major upside chart breakout. Let's check out a few charts.
In this daily bar chart of BIDU, below, we can see that prices have broken out to new highs for the calendar year. Prices are trading above the rising 50-day moving average line, as well as the rising 200-day moving average line. The trading volume has been steady. The On-Balance-Volume (OBV) line has continued to improve from March and confirms and supports the price advance this year. The Moving Average Convergence Divergence (MACD) oscillator is turning upwards for a fresh outright-buy signal.
In this weekly bar chart of BIDU, below, we can see that prices have been bottoming/basing since May 2019. Prices are above the rising 40-week moving average line as they make a weekly close above the January 2020 peak. The OBV line has made a new high for the move up and that is bullish. The MACD oscillator has been bullish since July.
In this daily Point and Figure chart of BIDU, below, we can see that prices have broken out to a new high with a potential $206 price objective.
Bottom line strategy: While there might be some extra risk in going long Chinese companies, the charts of BIDU look bullish now. Aggressive traders could go long BIDU at current levels risking below $144. The $200-$210 area is our price target.
