New Trade Signal: Short BAIDU (BIDU) While Asia stocks fall as economic impact of corona-virus weighs on markets
Baidu, Inc. (BIDU) is a Chinese multinational technology company specializing in Internet-related services and products. The giant tech company is under pressure as Chinese stock market continue to struggle amidst the Corona Virus spread.
This week we learned of large international companies such as HSBC, one of Hong Kong’s most important banks, that is going to cut over 35,000 jobs. More than 100,000 flights were canceled so far by almost all airline companies, and similarly the cruise ship and hotel industry experiencing same cancelation rates.
Looking at the chart, we can see BIDU currently trading at $134.5 level after hitting trend line resistance at 147.0 on January 10th and the stock has failed in creating higher highs since then. Looking forward, we predict that BIDU will continue see selling pressure and price will drop and look for support at $116-122 level.