Baidu Is Up From Early December Lows, but Shares Are Underperforming Year-to-Date

Take a look at some technical analysis of this technology company, which provides Internet search services.

Today’s chart is of Baidu, Inc. (NASDAQ:BIDU), which provides Internet search services. The company offers a Chinese language search platform on its website Baidu.com, and a Japanese language search platform on its website Baidu.jp.

Click to enlarge

What I Am Looking At:

iShares FTSE China Index Fund (NYSEARCA:FXI) has been outperforming since broad market mid-November bottom and is up 16% year-to-date.
BIDU is also up nearly 16% from early December low.
On a year-to-date basis, shares are underperforming, down more than 14%.
Currently facing resistance with the $100 century level.
On a technical basis, shares remain in a short-term descending channel.
Declining 40-day moving average providing resistance, all other moving averages stacked and trending lower
$110-115 resistance zone based on volume by price.
Short interest has risen nearly 100% since July and represents just over 3% of the float.
Nearly nine days to cover.
The 50-day buy-to-open put/call ratio ranks in the 92nd percentile of readings taken during the past year, indicating an extreme in pessimism.
11 out of 15 analysts rate shares a “strong buy.”

Strategy: Lot of crosscurrents in BIDU as pessimism continues to build; no heavy lean as trend remains firmly down.

This article by Tony Venosa, CMT, was originally published on Schaeffer's Investment Research.

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