Baidu, Inc. (BIDU) posted a roundabout type of pocket pivot at its 50-dma on Wednesday. Notice that this comes after an undercut & rally (U&R) move that occurred six trading days ago on the chart after undercutting the prior late October low of 232.44. This pocket pivot move back above the 50-dma serves as confirmation of the prior U&R move and is actionable using the 50-dma as a selling guide. Note, however, that the stock did stall slightly to close mid-range on the day, but this is logical within the context of a sharp upside move over the past six days following the initial U&R. Therefore, we could see the stock consolidate slightly here, and a constructive pullback closer to the 50-dma on light volume would be a good thing to see, and perhaps offer a more optimal entry opportunity.
Pocket Pivot Review - Baidu, Inc. (BIDU)
|23 Nov 2017 14:38 ET
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