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.
Comments
Night_Trader
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No trade here ! I did not take it because there was no significant upthrust after the big down gap.
Night_Trader
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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.
ATMcharts
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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
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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
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Really appreciate the response! BIDU is sure acting like it needs to pull back farther.
Zeheart
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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
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that is interesting, in this case would take out the stops under 100 level :D
Razvan
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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.