BIDU was one of my favorite core short set ups, we nailed that one a month before we called every move in BIDU and on a breakout we went short and made a nice payday.
So BIDU has been one on the radar as a possible long for an intermediate term trade (probably longer than a swing trade, but not quite a trend or primary trend trade). The longer term charts in BIDU have done the work, they're in good shape in the timeframe we are looking to trade BIDU, but like the market, it's the short term charts that are the timing for entries and there BIDU, like the market, needs some work.
Longer term (daily) in white is where we entered the first BIDU core short position. We have a large descending triangle (bearish implications for technical traders) and we have a recent break under the triangle, when that happened volume jumped up which is what we'd expect to see as everyone trading BIDU is watching the same area, the support trendline recently broken so that triggers any stops and more likely gives shorts the confirmation they need to enter their positions (chasing the trade as always).
On a daily 3C chart, I'm bearish BIDU for the primary trend, since large accumulation at the 2008/2009 lows, BIDU saw distribution and then a leading negative divergence, I can't see BIDU coming back from this over the long haul and at some point it will make an excellent short, what we are looking for in an intermediate trade is a short shakeout at the green arrow which we can play on the long side and then use that price strength to enter BIDU short again as the indicators turn negative on all timeframes and down BIDU should go, but I believe we have some time and a move to the upside before that happens.
The 60 min chart is NOT a STRONG signal in BIDU, but it is a change in character, we had an in line status or 3C/price trend confirmation at the green arrow as 3C made lower lows with price, then BIDU popped up, 3C stayed negative on that move and it failed and just before the break of recent support, BIDU went negative again, but now we have a slight positive that is changing character and right where institutional money can find a lot of supply at cheap prices-the break below support and the supply is from all the shorts apparent in BIDU's volume.
A closer look at the 60 min chart, note it doesn't start really leading positive until after the break because that's where a large amount of shares can be accumulated as Wall St. takes the other side of the retail short position-also note the relatively flat trading range where the leading takes place.
A 15 min chart shows the same negative divergence just before the break below support and a leading positive after it, I would suspect that is the supply of shares available from the shorts being accumulated at cheap prices while also setting up a bear trap of some size.
And the 5 min chart shows the same thing, so we have a pretty clear trend through multiple timeframes, what looks like a pretty clear accounting of events in BIDU. Like the market, BIDU now needs the short term charts to go positive and the longer term goes to continue making positive advances, then we have a high probability trade with good timing.
The shorter intraday charts-
This is the last few days on a 1 min, you can see where BIDU was negative, why it's down today.
The 2 min chart looks exactly the same
As does the 3 min, this is where we need to see positive divergences develop, it can happen with BIDU moving lower or it can happen with BIDU moving laterally (consolidation through price or time), but it needs to happen before BIDU becomes a high probability trade, it is a high probability prospect right now and worth keeping on your radar.
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