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| Gator's Chart of the Day: BIDU |
Baidu reported earnings after market and they beat by a penny (1.32 vs 1.31 expected) but the stock sold off hard and the last I saw was a trade at 100.90 which is just below the 50 day sma. This could be a good bounce trade but it may not happen at the open. I think this one will have quite a bit of selling pressure early in the session and it may take an hour or more to complete. The stochastic shows the stock has been under distribution and weakening for a couple of weeks.
The trade
I think it may be better to use a 5 or 10 minute candle rather than 3, 2 or 1 minute to find support and make an initial buy. I would not be particularly quick to add on this one either. If the stock holds the 50 day sma I think there will be several days of upside price movement so patience will be important. If the price falls more than a few pennies below the 50 day I'll pass on the trade.
