Wednesday, October 5, 2011

Search for Baidu

COMPLETE ARTICLE AND MORE GRAPHS

A company that continue to pop up in the news is Baidu (BIDU) which a lot of people call the Chinese Google (GOOG),  A recent partnership with Microsoft's (MSFT) Bing search engine should now give them access to the large English language segment they needed,  Right now with the stock selling at a 36% discount from its one year high you might want to consider this high flyer.  The one year trading graph provided by Barchart shows a great buying opportunity:



Barchart technical factors:

  • Barchart's technical indicators are based on short term, 1 to 6 month price movements.  Short term sell signals can signal a buying opportunity if the company has good fundamentals and a wide following
  • 80% Barchart technical overall technical sell signal - most of the 13 indicators are weakening from the sell side
  • Trend Spotter sell signal - also weakening
  • Trading below its 20, 50 and 100 day moving averages
  • 36.48% off its one year high
  • Relative strength Index is 28.63% and still weakening
  • Barchart computes a technical support level at 102.62
  • Recently traded at 106.01 which is below its 50 day moving average of 137.93

Summary - I'm placing Baidu (BIDU) on my watch list.  I like to acquire companies that have a large following, projections of double digit sales and earnings and have current upward price momentum.  Right now the stock has the first 2 criteria and I'm waiting for the market to turn to give me the last one.  Maybe as early as this week

Jim Van Meerten is a Marketocracy Master




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