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

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

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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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Twitter: @schaeffers
No positions in stocks mentioned.
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