BIDU dominated by bulls lifting the market higher throughout the day
Baidu Inc. (BIDU) Technical Analysis Report for Oct 27, 2020 | by Techniquant Editorial Team
BIDU finished Tuesday at 134.89 gaining $1.94 (1.46%), outperforming the Nasdaq 100 (0.82%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BIDU as at Oct 27, 2020):
Tuesday's trading range has been $3.55 (2.69%), that's slightly below the last trading month's daily average range of $3.58. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BIDU. Prices continued to consolidate within a tight trading range between 130.30 and 136.17 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on August 28th, BIDU lost -3.43% on the following trading day.
Buyers managed to take out the key technical resistance level at 133.86 (now S1), which is likely to act as support going forward. After having been unable to move lower than 131.13 in the previous session, Baidu found buyers again around the same price level today at 131.75.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 136.17 where further buy stops could get activated. As prices are trading close to October's high at 138.98, upside momentum might speed up should the stock mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for Baidu. Out of 58 times, BIDU closed lower 62.07% of the time on the next trading day after the market condition occurred.