Saturday, May 30, 2009 2:54:04 PM
~BIDU~ ...chart analysis...
(Weekly):
1} ~BIDU~ has not had two down weeks since the beginning of the year...the start of the next correction will be defined by two weeks down or 2 out of three weeks down...
2} ~BIDU~ currently is at/has reached a long term descending trendline... (orange)
3)~BIDU~ currently is at/has reached the long-term 50% retracement,made up of its historic high & most recent low...
4)If it can break past its 50% retracement & the orange descending trendline, the new bullish target would be 303.63 (61.8% retracement level)
5)If it cannot break past these resistance levels,my bear target would be a retrace to 226.06 (32.8% retracement level)
...next week will be very telling,as the 50% retracement is a very important technical level which will usually support or resist...
Daily:
1)~BIDU~ has to be one of the most resilient & strongest stocks of the year...
2) The daily chart looks very strong...The indicators are toppy, but still could hover higher...
3)The daily shows a breakout,although noteworthy,volume has been weak (especially the last four days) as volume couldnt even break above it 50dma...
...additional note...this set up ,imo, is perfect for an OTM straddle...a conservative straddle (if there is such a thing) would be the july's...the aggressive straddle would be the june's...
Straddle structured via half the distance of the targets (both sides)...
calls = 280's
puts = 240's
...price @ time of this post is 263.80,5/30/09...
(Weekly):
1} ~BIDU~ has not had two down weeks since the beginning of the year...the start of the next correction will be defined by two weeks down or 2 out of three weeks down...
2} ~BIDU~ currently is at/has reached a long term descending trendline... (orange)
3)~BIDU~ currently is at/has reached the long-term 50% retracement,made up of its historic high & most recent low...
4)If it can break past its 50% retracement & the orange descending trendline, the new bullish target would be 303.63 (61.8% retracement level)
5)If it cannot break past these resistance levels,my bear target would be a retrace to 226.06 (32.8% retracement level)
...next week will be very telling,as the 50% retracement is a very important technical level which will usually support or resist...
Daily:
1)~BIDU~ has to be one of the most resilient & strongest stocks of the year...
2) The daily chart looks very strong...The indicators are toppy, but still could hover higher...
3)The daily shows a breakout,although noteworthy,volume has been weak (especially the last four days) as volume couldnt even break above it 50dma...
...additional note...this set up ,imo, is perfect for an OTM straddle...a conservative straddle (if there is such a thing) would be the july's...the aggressive straddle would be the june's...
Straddle structured via half the distance of the targets (both sides)...
calls = 280's
puts = 240's
...price @ time of this post is 263.80,5/30/09...
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