Monday, January 09, 2006
Calm Before the Storm
Here is a daily chart of Baidu.com.
The narrow trading range of the past two weeks just below the 65 level tells me that the market is being supported and that the next big move from here will be upward. I suspect that the Google run is encouraging people to move money into other potential Googles like Baidu. I think the 60.08 low in BIDU will hold and that the market will move up to resistance at 2 1/8 times the 60.08 low at 127.67 or to resistance at 2 5/8 times 60.08 at 157.70.