Baidu Approaching Ichimoku Cloud Resistance
Baidu Approaching Ichimoku Cloud Resistance
Upcoming Earnings:
Baidu, Inc. (ticker: BIDU) is scheduled to report earnings before the market opens on 22 August. The consensus Earnings Per Share (EPS) estimate for the fiscal quarter ending June 2024 is US$2.24. The reported EPS for the same quarter a year prior was US$2.51.
Sell On-Rally Scenario at Ichimoku Cloud Resistance?
Even with a basic understanding of chart analysis, it is clear that Baidu has been entrenched in a downtrend since early 2023, made up of clear lower lows and lower highs.
Since the Leading Span A (light green at US$86.76) crossed below the Leading Span B (light orange at US$92.19), it has provided investors with an Ichimoku Cloud resistance to work with, which held firm in mid-July. While price is now trading above the Conversion Line (blue at US$86.11) and, recently, above the Base Line (red at US$87.41), the stock is nearing a second test of the Ichimoku Cloud Resistance. However, it must be noted that the chart has yet to see the Conversion Line cross back above the Base Line, a move that would be considered a bullish signal by some Ichimoku traders.
Price Direction
Given the downtrend and price nearing the Ichimoku Cloud, sellers may look for shorting opportunities around the Ichimoku Cloud if tested. Some investors may opt to wait for additional confirmation in the form of the Conversion Line crossing back under the Base Line (by the time price tests the Ichimoku Cloud, the Conversion Line would have crossed above the Base Line).
Upcoming Earnings:
Baidu, Inc. (ticker: BIDU) is scheduled to report earnings before the market opens on 22 August. The consensus Earnings Per Share (EPS) estimate for the fiscal quarter ending June 2024 is US$2.24. The reported EPS for the same quarter a year prior was US$2.51.
Sell On-Rally Scenario at Ichimoku Cloud Resistance?
Even with a basic understanding of chart analysis, it is clear that Baidu has been entrenched in a downtrend since early 2023, made up of clear lower lows and lower highs.
Since the Leading Span A (light green at US$86.76) crossed below the Leading Span B (light orange at US$92.19), it has provided investors with an Ichimoku Cloud resistance to work with, which held firm in mid-July. While price is now trading above the Conversion Line (blue at US$86.11) and, recently, above the Base Line (red at US$87.41), the stock is nearing a second test of the Ichimoku Cloud Resistance. However, it must be noted that the chart has yet to see the Conversion Line cross back above the Base Line, a move that would be considered a bullish signal by some Ichimoku traders.
Price Direction
Given the downtrend and price nearing the Ichimoku Cloud, sellers may look for shorting opportunities around the Ichimoku Cloud if tested. Some investors may opt to wait for additional confirmation in the form of the Conversion Line crossing back under the Base Line (by the time price tests the Ichimoku Cloud, the Conversion Line would have crossed above the Base Line).
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