BIDU – Hurry Up and Wait

I’m looking at a new setup in BIDU ($110.04, up $1). 

If the 9/28 high is any good, then selling a pullback to it would be a winning strategy. The area I’m looking at for a possible short (ONLY IF A TRIGGER fires off) is the 111.37-113.08 area. This zone includes a .618 retracement along with two “symmetry” or 100% projections of prior rally swings. If this same zone is cleared w/o a trigger, I back off the sell side in BIDU until further notice. The potential downside target on this one is 103.72 or the 1.272 extension of the full zig zag pattern. Risk can be defined either above the high made prior to your sell trigger, or above the top end of the price cluster resistance zone.

BIDU is expected to announce earnings October 25th, after the close.

Carolyn Boroden