Recently, I have posted about the upside technical breakout
for Alibaba (Code: BABA) (here).
That stock has since rallied from US$84 to US$104. There is nothing
much to write home about Tencent (Code: TCTZF) since it has been rising
since its listing.
Today, I would like to highlight about the promising technical
set-up for Baidu (Code: BIDU). From the weekly chart below, you can
see the following:
1. BIDU is now poised to test its intermediate downtrend
line at US$190.
2. Its RSI has broken above the downtrend line while its
+DMI is above the –DMI. (Both are precursors to a potential breakout of the price downtrend line.)
3. ADX has yet to hook up nor climb above the 20 mark (No
sign of uptrend momentum!)
4. MACD is still below the zero line (No uptrend yet!)
I think it is possible that the first test of the downtrend
line will be unsuccessful. If that happens, the share price may drop
back to
the 20 & 30-week EMA line at US$172-173. If you must get in cheap
&
early, this is one level that you can consider. However, you want to
conserve your fund and you are okay with buying a bit higher and surer,
then you should aim to get in when the price breaks above
US$190-195. As always, you have exercised careful discretion in all your
trading. Good luck!
Chart 1: BIDU's weekly chart as at Sep 6, 2016 (Source: Stockcharts.com)
Chart 2: BIDU's monthly chart as at Sep 6, 2016 (Source: Nasdaq.com)
Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.
http://nexttrade.blogspot.my/2016/09/baidu-another-exciting-chinese-e.html
