BIDU Update

Last Thursday I added some Calls to the BIDU position, Aug $110, and despite price action today, I'm glad I did. This is the previous BIDU update.

 So far the underlying trade is looking good. As we go through more individual stock charts, it will be interesting to see how they fit with any developments in the broader market charts being this market has been so highly correlated, ironically though, FB and BIDU are two stocks that have had low market correlation.

 Even with today's move, the general shape of a large rounding bottom continues to unfold in price and volume.

 From the price trend and the bearish descending triangle, technical traders would expect BIDU to follow the path of the red arrows to a new trend lower, but underlying 3C trade suggests we may actually be seeing something more like a "W" bottom with the recent rounding bottom being the second half of the formation, which would be a larger, more impressive base, able to carry BIDU higher in a counter trend move.

 Today's 1 min chart is leading positive in to the downside price action.

 The overall 2 min chart's trend at both potential bottoms in the "W" base.

 The same on the 3 min trend with a new leading positive high.

 The same positive divergences at the same areas on the 5 min chart.

 This is Telechart for the 10 min timeframe so it looks a little different, but the divergence migration is there with a leading positive 10 min chart.

 Also seen overall on the 15 min chart and one of the reasons early on this was suspected to be a probable bear trap.

The 30 min chart is also positive in the right places.

Finally...

The 4 hour chart shows where we entered long term core shorts in orange at a negative divergence, this chart shows an overall positive divergence on a quite long timeframe, it would make sense if the base was indeed as large as that "W" base.