Baidu - looking for a second leg up

BATS:BIDU   Baidu, Inc
Baidu looks like we can hope for a second leg up. Good opportunity would be at 50% retracement of AB and earlier resistance from July. Stop below the 0.786 retracement and target at AB=CD .


No trade here ! I did not take it because there was no significant upthrust after the big down gap.
Bidu came down with a big gap on big volume into our entry zone. I would wait for a good up move on some volume to go long. Let ´s see what happens. It could also be wise to take at least partial profits at the closing of the down gap.
Is the basic idea still valid if it only pulls in to .382 or less? I'm just thinking around a .382 retrace may keep that gap open and reinforce what your seeing.
Night_Trader ATMcharts
Hmmm.....I would not like that. It could happen, but I think there has to be a larger pullback before reaching the target. If it goes only to .382 I would expect a bigger pullback later on in the move and I would try to get on board when that happens. If it rallies from here straight up to D we miss the move. So what ? We trade something else. ;-)
ATMcharts Night_Trader
Really appreciate the response! BIDU is sure acting like it needs to pull back farther.
Maybe u can take 61.8 retracement into consideration.. i encounter lots of time for ABCD pattern, price very possible to hit 61.8 or 78.6 ... just my 2cents suggestion... =)
Razvan Zeheart
that is interesting, in this case would take out the stops under 100 level :D
100 is a pretty good support, a drop in volume with this C move could be a good signal for entering at your setup level.