Baidu.com Climbs Back into Trading Range

Tags: BIDU
29 May 2:37am
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The shares of Baidu.com (BIDU) caught my attention when they climbed back into a their prior trading range this afternoon. The stock is up 2% today, pulling back above the 340 level after briefly falling to test support at its 10-week moving average. The equity had been trapped between support at the 340 level and resistance at the 380 level since the beginning of April.

 WEEKLY CHART OF BIDU SINCE FEBRUARY 2008 WITH 10-WEEK MOVING AVERAGE

Sentiment toward the stock remains in the bulls' camp. The Schaeffer's put/call open interest ratio for BIDU rests at 0.74 and is lower than three-quarters of all those taken during the past 52 weeks. What's more, Zacks reports that 8 analysts give BIDU a "buy" rating, while 4 rate it a "hold" and just 1 rates it a "strong sell." This configuration leaves the shares vulnerable to potential downgrades.


Copyright Schaeffer's Investment Research http://www.schaeffersresearch.com

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Schaeffer’s Investment Research, founded by Bernie Schaeffer in 1981, is a research-driven provider of investment research and recommendations featuring a unique, time-tested analysis of investor expectations. Schaeffer's contrarian approach, called Expectational Analysis®, focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription publication and it's website, www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's.