Like other stocks in China, Baidu (BIDU) is showing strength and it is attempting to break past its previous highs around $170. The charts show strong demand in the $150 area as it builds the “handle” of a cup and handle pattern. If it breaks out, the measured move for this pattern is about $80. The price target is then $250. As with other similar trades that move past all time highs, I like placing a trailing stop that is based on 2x the ATR to protect profits.
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- BIDU Weekly Chart
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- BIDU Daily Chart
