BIDU: Back Above The Falling Wedge

From the weekend on BIDU:

"The first order of business for The Bulls on Monday, January 23, is to: (1) get back above 123.02-123.05 resistance, (2)then the top of the Channel, which will come in at 123.808 and, (3) then knock out Friday's high of 124.54, which would trigger a repeat Buy Signal from the 13/21RSIs and the 21/34RSIs."

Bang! The Bulls came out of the gate at the opening gong and scored all three objectives in the first minute of trading.

I was wanting more of a pullback to get long, but when The Bulls took it higher, I placed an order for 2,000 shares at 124.35.



No luck with that. BIDU rallied almost to 126.00, so I cancelled the order. I accepted the disappointment with my usual dignity and aplomb.

Curses! Curses! CURSES!!!

Back to the drawing board. Sigh...




At this juncture in the session, The Bulls were looking like they wanted to make another bid for the highs. The lows here were right at the 124.54 "Buy Pivot" which had been triggered by the RSIs and, basis the 5-minute chart that we'll look at in a minute, there was an Inverse H&S forming. I bought 2,000 BIDU for 125.06.



Little upside breakout here, to the neckline of the Inverse H&S.



An attempt at a breakout, but then a pullback to retest the top of the little Ascending Triangle. That's fine, but GIT GOING. I had "paid up" for the stock and I wanted results. I wasn't much for "Ye Olde Knuckle-biter."



Oh, geez. A nice breakout with plenty of open field running available, but The Bulls buckled and allowed The Bears to take the stock back below the neckline for "Ye Olde Knuckle-biter." UGH.



Another breakout above the neckline...then ANOTHER "Ye Olde Knuckle-biter." I had a paper gain of well over $3,000 on the breakout. "Maybe" the little Falling Wedge (in white) was going to breakout to the upside, but this was so sloppy, "maybe" the danged thing was going to come back in my face. I had had enough of weak-kneed Bulls and decided to TAKE THE MONEY. Sold in the 125.60's.



Sloppy play sometimes turns out alright, but this H&S Top that The Bears put in is good example of what can happen if/when upside breakouts get sloppy. At the white arrow, The Bulls failed to get through the broken neckline, validating the H&S Top breakdown, and down she went.

The yellow line, by the way, is the Right Shoulder of the Inverse H&S pattern in the last chart. That 123.50 low "shouldn't" get taken down. The late session low was 123.50 exactly.



Despite the sloppiness from The Bulls, technically, they stuck the close slightly above the upper trendline of the Falling Wedge, but they need to do something better than that.



Gain: $1,100