Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:>ChinaETFsEarningsEconomy>EnergyForex>GoldIncome>Lessons>IdeasTrading

  • Other news: News from PR Newswire
| More

Is this the Big Beautiful Bullish Breakout for Baidu BIDU

Mon, Jul 24, 11:41 AM ET, by Corey Rosenbloom

Is THIS the actual Big Bullish Breakout for BIDU?

After a nasty Bull Trap tricked traders in May, price held support in the lower rising triangle trendline, keeping the pattern in play.

After three weeks (so far) in a row above the falling triangle trendline, is THIS a valid break?

Let’s take a look:

Baidu BIDU Bullish Breakout Trade

If you’re new to technical analysis and want to study a Symmetrical Triangle Price Pattern, Baidu (BID) gives you a textbook example.

At this point traders are buying the breakout, expecting a larger bullish swing to give them profits if the breakout extends.

Breakouts tend to occur (to the upside) when buyers put on new positions, or add to existing ones, while bears (short-sellers) cover their losses with their stops.

Also, price alternates between contraction (sideways action – often seen as a triangle or rectangle) and expansion or trending action.

Note your levels as you zoom down to the Daily Chart for additional clarity:

Baidu BIDU Bullish Daily Chart Breakout Trade

I’m often asked “how can we know a breakout is valid?”

There’s no 100% accurate way – I wish there were – but one major clue comes from volume.

In this case (the May breakout above the trendline), we had HIGHER spikes on BEARISH or sell-days than on bullish (buy) days as indicated by our red/green volume indicator.

The breakout failed in part because buyers DID NOT step up their game (also seen with the negative momentum divergence) and bears WERE NOT compelled to take their stops. Bears won and buyers rushed for the exits as price collapsed back inside the triangle trendline pattern back to the lower trendline (target).

That is actually a good trade – a failed outcome or trap – to study for another day.

Back to the current breakout…

We did see a spike of green volume on July 5th but since then, buyers have been relatively weak in terms of volume.

Price action remained strong – in fact very strong – yet volume just isn’t impressive.

This suggests traders take caution and monitor any open positions – if not in a position, wait to see how price behaves on the first pullback.

Either way, study this example and follow-along what happens next with these levels.

 

Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT

Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”

blog.afraidtotrade.com


SDI Glossary: "Breakout" Definition
SDI Glossary: "Bullish" Definition
SDI Glossary: "price" Definition
SDI Glossary: "Finance" Definition
SDI Glossary: "Stock" Definition
SDI Glossary: "Trend" Definition
This Article's Word Cloud:   Afraid   After   Breakouts   Corey   Follow   Price   THIS   Trade   Wiley   above   action   additional   adsbygoogle   afraidtotrade   along   also   another   back   bears   behaves   breakout   bullish   buyers   days   example   failed   from   green   levels   lower   often   pattern   positions   price   seen   stops   strong   study   take   their   these   this   trade   traders   trendline   triangle   valid   volume   want   with

| More

Join Me TONIGHT for a Unique Stock and Trade Forecast Panel - Analyze Your Trades!
Tue, Aug 22, 12:21 PM ET, by Corey Rosenbloom

We’re excited to invite you to a special event tonight! I’m sure you’ve attended trading ...

A Longer Term View of our Collapse in Market Volatility
Tue, Aug 22, 12:11 PM ET, by Corey Rosenbloom

We know that volatility is lower in our current environment, but by how much… and ...

ULTA Beauty Plays Desperately for a Longer Term Support Bounce
Mon, Aug 21, 4:11 PM ET, by Corey Rosenbloom

Can they do it?! Can they do it? Buyers will be eager to step in ...

LuluLemon LULU Squeezes its way Between the Daily EMAs
Mon, Aug 21, 3:51 PM ET, by Corey Rosenbloom

Shares of Lululemon (LULU) jumped today, but merely continued the “ping-pong” between the 20 and ...

Helpful Pullback Price Planning Grid for NAS Dow and SP500
Fri, Aug 18, 2:21 PM ET, by Corey Rosenbloom

How far have the “Big Three” US Equity Indexex pulled back, what level tips them ...

WalMart WMT Perfectly Straddles the Daily EMAs ahead of Breakout
Thu, Aug 17, 2:51 PM ET, by Corey Rosenbloom

During today’s big sell session, Wal-Mart (WMT) collapsed toward its 50 day EMA target. However, ...

Amazon AMZN Fails at Overhead Wall of Resistance
Thu, Aug 17, 12:21 PM ET, by Corey Rosenbloom

I featured Amazon (AMZN) as a bearish swing trading candidate in last night’s member report ...

Energy XLE Downtrends to New Low
Wed, Aug 16, 12:31 PM ET, by Corey Rosenbloom

So far in 2017 we’ve seen relentless selling pressure in the XLE (Energy ETF). Here’s ...

Aggressive Bottom Fishing in SnapChat SNAP
Wed, Aug 16, 12:11 PM ET, by Corey Rosenbloom

New and aggressive traders often enjoy searching for that elusive trend reversal trade, also known ...

Catching Volatility Explosions 10x Trade Formula Webinar Thursday
Tue, Aug 15, 7:41 PM ET, by Corey Rosenbloom

I’m so excited about this event, given the big explosion in volatility of the last ...

Our August 15 Bouncing Emini Fibonacci Grid Update
Tue, Aug 15, 10:11 AM ET, by Corey Rosenbloom

With volatility back in the market (for now), let’s update our Fibonacci Grid for the ...

NVIDIA NVDA Crashes Through Bearish Wedge to Daily Target
Fri, Aug 11, 1:31 PM ET, by Corey Rosenbloom

Bullishly trending NVIDIA (NVDA) just broke a bearish rising wedge on negative divergences, collapsing instantly ...

Critical Swing Trader Support Test in Netflix NFLX Here
Fri, Aug 11, 1:11 PM ET, by Corey Rosenbloom

Netflix (NFLX) gives aggressive traders a chance to play a triple-support price level now. Let’s ...

Quick Quad Market Reaction to North Korea News Aug 10
Thu, Aug 10, 3:51 PM ET, by Corey Rosenbloom

Continuing our thought process from this morning, let’s take a look at the snap-reactions and ...

It Took the Threat of Nuclear War to Send the Dow Down 100 Points Today
Thu, Aug 10, 2:31 PM ET, by Corey Rosenbloom

I’m joking of course but doesn’t it feel that way? With rhetoric ramping up over ...

Join Me at the Best of Wyckoff 2017 Conference Sat August 19
Tue, Aug 8, 8:41 PM ET, by Corey Rosenbloom

Fellow traders, I’m excited to announce that on August 19th, I will be speaking in ...

August 8 Perfect Intraday Emini Trend Reversal Lesson
Tue, Aug 8, 4:11 PM ET, by Corey Rosenbloom

While new traders aren’t encouraged to fight/fade trend in motion, there are specific setups that ...

Charting How Volatility has been Zapped from our Current Market (and what to do about it)
Tue, Aug 8, 11:41 AM ET, by Corey Rosenbloom

If you’re having trouble making the daily or weekly profits you’ve gained in the past, ...

Charting a Bullish Break into Open Air Goldman Sachs GS
Mon, Aug 7, 4:11 PM ET, by Corey Rosenbloom

Shares of financial giant Goldman Sachs (GS) broke resistance today into a Bullish Zone. Is ...

Emini SP500 Slowly and Gently Drifting to the Highs Aug 7
Mon, Aug 7, 1:51 PM ET, by Corey Rosenbloom

After a narrow range developed between 2,465 and 2,475, we’re seeing a soft bullish drift ...

The Gold Stumble and the Dollar Surge Aug 4
Fri, Aug 4, 12:51 PM ET, by Corey Rosenbloom

On the morning of big US Jobs Report, we see a big intraday move in ...

Downtrending TEVA Surprise Gaps to New Lows
Thu, Aug 3, 11:21 AM ET, by Corey Rosenbloom

Pharma stock TEVA gives us another reason why we should NOT fight trends in motion. ...

Preparing for a Pullback in the Dow Jones at All Time Highs
Thu, Aug 3, 10:31 AM ET, by Corey Rosenbloom

With the Dow Jones Index surging seven days in a row straight up, we’d be ...

Here is the Price Level to Watch ahead of Apple AAPL Earnings Today
Tue, Aug 1, 12:41 PM ET, by Corey Rosenbloom

Big stock Apple (AAPL) reports earnings today and we’re watching a critical price level to ...

Emini Still Fiercely Trades within our Fibonacci Levels August 1
Tue, Aug 1, 11:31 AM ET, by Corey Rosenbloom

We have YET ANOTHER “gap and crap” day like yesterday where morning strength (a gap ...

The Three Phase Trend Trading Lesson from Under Armour UAA
Mon, Jul 31, 2:11 PM ET, by Corey Rosenbloom

Under Armour (UAA) is currently in a Distribution and Mark-Down phase, but how did we ...

US Dollar Falls to Key Target Make or Break Support Price July 31
Mon, Jul 31, 1:11 PM ET, by Corey Rosenbloom

If you’ve been following the US Dollar Index, you may have been surprised with how ...

A Second Gap and Crap for the Emini at the Highs July 31
Mon, Jul 31, 12:41 PM ET, by Corey Rosenbloom

While today started similarly to July 27th’s “Gap and Collapse,” today we’re seeing a rally ...

Down Hard Goes the Dollar as Up Quickly Go Gold and Oil
Fri, Jul 28, 12:41 PM ET, by Corey Rosenbloom

Of the recent intermarket price swings, the most interesting development has been the ongoing slow ...

The NASDAQ Snap Pullback July 28
Fri, Jul 28, 12:31 PM ET, by Corey Rosenbloom

The Big News yesterday was the snap-collapse of the NASDAQ and leading tech companies mid-day. ...

Well Look, a New Updated Fibonacci Grid for the Emini July 28
Fri, Jul 28, 12:11 PM ET, by Corey Rosenbloom

After a series of new all-time highs – at which point we really can’t draw ...

A Double Day Breakout in Technology XLK
Thu, Jul 27, 10:21 AM ET, by Corey Rosenbloom

While you’re watching the big bullish breakout in Facebook (FB) this morning – along with ...

Studying the Rounded Reversal Breakdown Setup in Ford
Wed, Jul 26, 10:51 AM ET, by Corey Rosenbloom

Ford (F) gives us plenty of educational examples of how a market sets up a ...

Ford F Flags Down to the Lows in Bearish Breakout
Wed, Jul 26, 10:31 AM ET, by Corey Rosenbloom

If you’re a big fan of technical analysis and bear flags like I am, you’ll ...

Huge Breakout to the Highs in AMD Today
Wed, Jul 26, 10:21 AM ET, by Corey Rosenbloom

Finally, we get an example of a big stock beating earnings positively and then rallying. ...

A Rare Stumble and a Fall for GOOGL
Tue, Jul 25, 10:11 AM ET, by Corey Rosenbloom

On a day that the broader stock market breaks to another new exciting all-time high, ...

Is this the Big Beautiful Bullish Breakout for Baidu BIDU
Mon, Jul 24, 11:41 AM ET, by Corey Rosenbloom

Is THIS the actual Big Bullish Breakout for BIDU? After a nasty Bull Trap tricked ...

The Top Three Bullishly Trending Stocks above 200 day SMA Scan
Fri, Jul 21, 1:11 PM ET, by Corey Rosenbloom

When swing trading, we like scanning for “strong stocks getting stronger.” A simple, effective method ...

After Impressive Rally MSFT Hanging Out at the Highs
Thu, Jul 20, 12:41 PM ET, by Corey Rosenbloom

You may not see Microsft (MSFT) as a great candidate for day trading, but swing ...

Creeper Emini Trend to New Highs Revealed July 20
Thu, Jul 20, 11:51 AM ET, by Corey Rosenbloom

The bulls charge forward, carving out a new all-time high this morning. This afternoon doesn’t ...

Critical Support Test Challenge for Goldman Sachs GS
Wed, Jul 19, 9:51 AM ET, by Corey Rosenbloom

Goldman Sachs (GS) reported positive earnings that beat expectations yesterday… yet the stock fell. Shares ...

Back to the Lows we Go in Chipotle CMG after Big Arc
Wed, Jul 19, 9:41 AM ET, by Corey Rosenbloom

After a textbook Rounded Arc formation completed in Chipotle (CMG) shares, we now see a ...

Peeking at Market Internals on the Breakout to New Highs
Mon, Jul 17, 2:11 PM ET, by Corey Rosenbloom

What are market internals saying about the recent big bullish breakout to new all-time highs? ...

Big Breakout to New Highs in Emerging Markets EEM
Fri, Jul 14, 11:51 AM ET, by Corey Rosenbloom

If you’re only watching the US Indexes like the S&P 500, you may have missed ...

Watching a Bullish Breakout in Apple AAPL Shares
Thu, Jul 13, 9:51 PM ET, by Corey Rosenbloom

Apple (AAPL) shares broke Thursday above a key price level, and we’re carefully watching what ...

Triangles and the Current Rectangle Patterns in EURUSD
Thu, Jul 13, 10:31 AM ET, by Corey Rosenbloom

We’re seeing many exciting Triangle Price Patterns develop on the pathway lower for the EURUSD ...

The Weekly Autozone AZO AutoArc Reversal
Wed, Jul 12, 3:31 PM ET, by Corey Rosenbloom

Autozone (AZO) shares experienced serious selling pressure in 2017, collapsing from the $800 level toward ...

New Exciting Thrilling All Time Highs in the Dow Jones Today
Wed, Jul 12, 2:31 PM ET, by Corey Rosenbloom

We couldn’t be more excited! Let’s celebrate the New All-Time, Never-before-seen, Highs in the Dow ...

The Fib and Arc Pathway Still Playing in Emini July 11
Tue, Jul 11, 12:21 PM ET, by Corey Rosenbloom

You’d think today would be different but it’s not – and that gives us an ...

GE Struggles During Weekly Rounded Arc Lower
Mon, Jul 10, 3:11 PM ET, by Corey Rosenbloom

Shares of General Electric (GE) sank lower today after forming a larger Weekly Arc Reversal ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

Is this the Big Beautiful Bullish Breakout for Baidu BIDU | Self Directed Investor | Copyright © 2008 - 2017, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of serious individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.