Chinese stocks have been making a comeback this year, and this is no different for our stock for today’s Daily Smart Report. Baidu’s (BIDU) stock has been rising in a well defined channel for several weeks at this point. In addition to that, the stock has two key levels around 130 and 155, which if broken, could send the price even higher.
The channel created by this rise in the stock’s price shows us that we are in a very strong trend, and adds confirmation to any other indicator we see. A pullback to the channel’s lower band could just mean a fall before continuing higher, while approaching the top band could indicate a pullback to some level of support. These channels really help us visualize the strength of the trend, so we can make better, more informed trades.
If you want to hear the full breakdown and find how we might trade this setup, you’ll need to watch the video below!
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