Baidu Inc (HK.9888): Range Play

Published On: 16 October 2023, 09:20 AM | Sean Ng, Dealer  

Key Entry Price Pivot(s):
  • $124.10
Recommended Trade:
  • Long above $124.10, take profit 1 at $133.20, take profit 2 at $139.00, stop loss at $120.00
Alternative Case:
  • Short below $120.00, take profit at $112.80, stop loss at $125.00
  • Baidu has been forming a wedge since about December 2022
  • It has recently been consolidating in a tighter range between $124.1 and $133.2, with a strong support and resistance respectively on either side
  • The bottom of the wedge and the support level of the consolidation have lined up recently
  • 50-day exponential moving average has been flattening out, indicating that the consolidation is likely to continue for some time
  • This presents a potential long trading opportunity to the other end of the range