BIDU - Excellent Relative Strength

(Click On Charts To Enlarge)

This is the daily chart of BIDU that we looked at coming into this week, with the trendline data points for the top and bottom of the channel noted.



After breaking out of the white downward sloping channel to the upside on Monday, and forming the pattern in yellow by Monday's close, BIDU rocketed to almost 127.00 at yesterday's open (yellow arrow). That took BIDU above the channel in the daily chart that we just looked at.

BIDU then gave back all of the day's gains, filled the morning gap at White #2 of what became a Symmetrical Triangle, then formed and broke out of the little patterns in red and orange.



I made a play in BIDU after the morning gap was filled, and it began to rally. Gain: $2,500.



BIDU's 127.09 close is a breakout above the channel in the daily chart, and it also is a complete fill of the 125.71 - 126.80 gap from February 18, represented by the two horizontal dotted red lines. BIDU has been showing excellent relative strength basis the NASDAQ Composite Index, which still is well below its February 18 high.

The Bears have gotten squeezed badly and would very much like to turn yesterday's close into a false breakout.