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Do We Trade the Price Action or the 'News' on Baidu?

Right now the charts of BIDU look bullish.
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Baidu (BIDU) is a Chinese technology company "specializing in Internet-related services and products and artificial intelligence" and it has "made noise" about delisting on Nasdaq. Is this just part of the banter between the U.S. and China or should we pay more attention to the charts and indicators? Let's check.  

In this daily bar chart of BIDU, below, we can see that prices have been in a sideways trading range the past 12 months. BIDU recently closed above the slightly rising 200-day moving average and is trading above the rising 50-day moving average line.

Daily trading volume looks like it has increased since early March and the On-Balance-Volume (OBV) has moved higher from March and is now very close to making a new high for the move up. A rising OBV line happens when buyers of a stock are more aggressive.

The Moving Average Convergence Divergence (MACD) oscillator crossed the zero line in May for an outright buy signal.  

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In this weekly bar chart of BIDU, below, we can see that prices suffered a significant decline from around the middle of 2018. Now prices have recovered a bit and are above the bottoming 40-week moving average line.

The weekly OBV line shows a big bullish divergence as prices made new lows for the move down in March but the OBV line made a higher low. Sellers were not aggressive into the March low.

Another bullish divergence can be seen from the 12-week price momentum study in the lower panel which made a higher low back in last June/July even though prices made lower lows this year. The interpretation of this difference or divergence is that someone was an aggressive but quiet buyer into the lows this year.  

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In this Point and Figure chart of BIDU, below, we can see that the software is projecting a potential upside price target in the $146 area.  

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Bottom line strategy: I have no knowledge of whether the relationship between the White House and China will improve or get worse. Will this hurt Chinese companies listed in the U.S.? I don't know but right now the charts of Baidu look bullish. Traders who want to go long BIDU should risk a close below $108.

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