Updated June 26, 2019
It’s been two months since I last updated on this ticker, and back then I already said ” Big picture wise, BAIDU is IMHO in a corrective Cycle 2 wave as the entire price action since late-2014 has been overlapping and corrective looking forming IMHO an irregular flat Cycle-2 wave. Question shorter-term is if major-a of Primary-C has already bottomed (as three waves; a, b, c) or if it wants to make a five wave sequence (i, ii, iii, iv v).”
Well, we got the five waves down sequence instead. So it looks as if BIDU is ready for a bounce higher (wave/b/2) to the resitance zone. From there wave-c/3 can then target as low as $40-$20… Of course there is obvious support at $80, this means a substantial hair cut is due once wave-b/2 has completed. It is even possible wave-2/b will only bounce to about $150… Time will tell.
I personally don’t like trading such bounces as BIDU is clearly in a massive Bear market. Just check the setup on the daily chart. Bounces in bear markets often fail to reach upside targets, while downside targets can easily be exceeded. It’s simple the opposite of a Bull… Trade accordingly if so desired.