Chinese search engine platform Bidu (BIDU) has experienced choppy sideways trading the past three months. Is it time for prices to launch a new trend?
At their Beijing headquarters Thursday, Bidu's Chief Executive Robin Li sought to introduce its AI-powered chatbot, Ernie Bot. Unfortunately a live demo of Ernie Bot was missing. Let's see if this is impacting the charts.
In the daily bar chart of BIDU, below, I can see that share prices are making a large outside day and perhaps a higher close. BIDU tested the bottoming 200-day moving average line and so far the test looks successful.
Trading volume has been choppy the past six weeks but the On-Balance-Volume (OBV) line has moved sideways the past three months. The Moving Average Convergence Divergence (MACD) oscillator turned lower in mid-January and is nearly back down to the zero line.
In the weekly Japanese candlestick chart of BIDU, below, I see a mixed picture. Share prices are trading above the 40-week moving average line which now has a slight positive slope.
The weekly OBV line shows limited strength from an October low. The MACD oscillator is above the zero line but it is narrowing telling me that the trend strength is weakening.
In this daily Point and Figure chart of BIDU, below, I can see a potential downside price target in the $101 area.
In this weekly Point and Figure chart of BIDU, below, I can see the $101 price target noted on the daily Point and Figure chart above.
Bottom-line strategy: Shares of BIDU are likely to continue to "chop sideways" but the risk appears to be to the downside. Tread carefully.
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