Baidu Inc (ADR) (NASDAQ:BIDU) Trading Outlook
Chinese search engine Baidu, listed on the US Nasdaq market, said it was planning a US$1 billion share buy-back program over the next 12 months.
Baidu on Monday announced disappointing second-quarter results and shares fell.
Profit for the second quarter came in at 3.66 billion yuan (US$591 million), up slightly from 3.55 billion yuan in the same period a year earlier.
Baidu said in a statement its board had authorized share repurchases of up to US$1 billion, which would be funded through its existing cash balances.
Baidu stock was up by 1.18 percent to US$170.01 on Wednesday, according to Nasdaq.
BAIDU INC ADS closed up 3.930 at 173.940. Volume was 56% below average (consolidating) and Bollinger Bands were 79% wider than normal.
Bollinger Bands are wider than normal. The large width of the bands suggest high volatility as compared to BAIDU INC ADS’s normal range. Therefore, the probability of volatility decreasing and prices entering (or remaining in) a trading range has increased for the near-term. The bands have been in this wide range for 3 period(s). The probability of prices consolidating into a less volatile trading range increases the longer the bands remain in this wide range.
Open High Low Close Volume___
172.500 174.780 171.340 173.940 1,618,575
Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 192.97 199.00 213.75
Volatility: 106 54 42
Volume: 6,858,337 3,702,282 3,420,929
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
HEFFX Candlesticks
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.
Summary
BAIDU INC ADS gapped up today (bullish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
BAIDU INC ADS is currently 18.6% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of BIDU.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on BIDU.O and have had this outlook for the last 2 periods.
HEFFX Momentum
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 18.0417. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 3 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 34.44. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 1 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -120.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.
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