BIDU's Pennants

Not as conspicuous or well-formed as AAPL's pennants, but Baidu (BIDU) also shows tradable pennants in the Point and Figure chart.

BIDU today breached $400 again intraday, and the stock is nearing all-time high that was recorded in 2007 ($429.19). It already passed the 2008 high of $382.90. If you look at the 3-year daily chart of BIDU, it looks just too wild to do anything with the stock. I briefly traded BIDU (2 days total) over BIDU's earnings using call options. Bought them before the earning, sold after the earnings, double the money, thank you.

But if you look at BIDU in the Point and Figure chart, there were several buy points that wouldn't have lost you money in the correction that came after. They were right at the pennant break. It may be forming another pennant right now, after hitting $408. It could correct back to the previous high, which is around $370.


Not that I am going to buy this stock. I don't know the company well enough, though TA people say it doesn't matter. Still, I don't have a good enough feel for the stock's movement. It already almost quadrupled in price since December 08 low, so the easier trade is probably over.