During Tuesday night's Lightning Round segment of Mad Money, Jim Cramer was asked about Baidu (BIDU) . "This is my second favorite Chinese stock behind Alibaba Holdings (BABA) , said Cramer to a caller.
Let's pay a visit to the charts and indicators of BIDU.
In this updated daily bar chart of BIDU, below, we can see that the shares have stabilized the past two months. Prices have recently climbed back above the 50-day and 200-day moving averages. The 50-day line is bottoming.
The On-Balance-Volume (OBV) line has been improving this month and tells us that buyers of BIDU are again being aggressive. The Moving Average Convergence Divergence (MACD) oscillator is crossing back above the zero line now for a new outright buy signal.
In the weekly Japanese candlestick chart of BIDU, below, we see an improving picture. Prices are back above the rising 40-week moving average line.
The weekly OBV line is close to breaking its downtrend from February. The MACD oscillator has been narrowing in recent weeks and is close to a bullish crossover.
In this daily Point and Figure chart of BIDU, below, we can see that the software is projecting the $257 area as a price target.
In this weekly Point and Figure chart of BIDU, below, we can see a $305 price target.
Bottom-line strategy: It looks like the correction in BIDU is behind us and a new rally lies ahead. Traders could go long BIDU at current levels risking to $179. Our price targets are $257 and then $305.
