Baidu may rise to 131.20 - 136.20

Our pivot point is at 105.7.

Our preference

The upside prevails as long as 105.7 is support.

Alternative scenario

The downside breakout of 105.7 would call for 97.7 and 92.9.

Comment

The RSI is trading above 70. This could mean that either the stock is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is above its 20 and 50 day moving average (respectively at 91.105 and 88.0595). Finally, Baidu has crossed above its upper daily Bollinger band (112.47).

Supports and resistances

141.2 **

136.2 *

131.2 **

126.2

115.13 (USD-last)

109

105.7 **

97.7 *

92.9 **

Number of asterisks represents the strength of support and resistance levels.