Wednesday, July 15, 2009

Breakout on Baidu




Baidu (BIDU) has been a favorite of Stone Fox since the low $100s even though we've apparently not written about it much. Internet search in China is just too attractive to have passed up BIDU even back when every stock was going to zero. Today, BIDU has broken out from its recent high of $310 to now trade at $317. Looks very bullish that we'll see much higher prices in the near term. When BIDU originally hit $310, it was very stretched above its moving averages. Now that they've risen BIDU has much more support for another move higher.

Edit 4:15pm: added the closing chart to illustrate the breakout. BIDU closed just below $316, but clearly above previous highs.

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