Friday, May 12, 2006

Baidu Update

Here is a daily chart of I commented on this chart yesterday.

In my last post on BIDU I said that if the market were to reach 77 support without any intervening reaction then I would identify the drop from 91 as only the first phase of a three phase corrective move. This is in fact what has happened as you can see from the chart. So now I think the market will rally to 87 or so and then decline in a third phase to support around the 65 level.

I still think BIDU has a good chance to move over the 100 level after this correction is complete.