BAIDU LONG ABCD PATTERN

D1 Chart

D3 Chart

Baidu is currently trading at $124.05, presenting an attractive risk/reward setup based on a completed harmonic ABCD pattern. The technical structure suggests a potential bullish reversal from recent weakness.

Trade Details:

• Entry Zone: Current levels around $124-125
• Target: ~$160 (derived from ABCD projection)
• Upside Potential: Approximately 29% from current price

Technical Context:

The chart shows a well-defined harmonic pattern with clear Fibonacci retracement levels marking key support and resistance zones. BIDU recently pulled back from its 52-week high of $149.51 to test support in the $118-124 range, establishing point D of the pattern. Current price action is holding above the 0.618 Fibonacci retracement level, suggesting buyers are defending this zone.

The stock is trading near its 50-day moving average ($124.38) while maintaining significant distance above its 200-day MA ($100.32), indicating the broader uptrend remains intact. With a P/E ratio of just 11.26 for a leading Chinese tech company, the valuation provides additional downside protection.

Risk Management: Key invalidation level sits at the recent lows around $118, offering a tight stop-loss for favorable risk/reward.