BBBAIDU INC CEDEAR EACH R 1 ADR (ARS)
10,575ARSD
−75−0.70%
At close at Aug 19, 22:26 GMT
ARS
No trades
BIDU trade ideas
Back in fashion?GOOD FUNDAMENTALS
Consensus = Buy
Valuation = Appealing (PE 13.42x)
Growth and profitability = Exceptional (ROE 44%, 5yr growth +53%)
Only target price is weak (flat), but could it be revised upwards?
TREND PICKUP
Sitting on the long-term MA50 support
Closed just below the medium-term MA100 resistance
Looks like it is possibly turning positive on the LT chart
Short-term trend looking solid with MAs turning positive
LEVELS
UP - 180 / 185 / 190
DOWN - 173.50 / 172.50 / 167.50 / 165
CONCLUSION
Go long here ahead of earnings in half position
Target 190. Potentially more if it breaks it to the upside
Stop 165
R/R a little weak at 0.8x (justifying the half position trade).
Critical time for $BIDURight now the chart is at the end of a pennant lasted for two years. It is time for a direction selection, up or down.
The founder recruited a former high-level executive from Microsoft for reforming $BIDU completely. They plan to focus on AI for looking for next profit source.
BIDU little swing and long-term gain.BIDU have gone through the same 3.5 year pattern twice. Each iteration started with continuous growth.
Currently there is a consolidating triangle pattern, getting closer to an ultimate breakout.
It is highly unlikely for the breakout to go against the upward trend due to the fact that Baidu seems rather undervalued at the moment. P/E is just 12.4 against similar companies 30-50.
