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.
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.
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