Baidu, Inc. : An appropriate purchase level
By Pierre Gilles de la Londe
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$223.85 | $0 | $208.06 | -100% |
According to Surperformance ratings, the group has strong fundamentals, indeed, net earnings are expected to grow by 27% between 2013 and 2014. In addition, analysts have been revising upward their earnings estimates and nowadays expect a profit of USD 39.33 per share for the current year.
Following a bullish wave, the stock now shows a slight decline. It has just touch the USD 217.5 midterm support, which correspond to the lower trendline of an upward canal and has rebound on it. At this level, a re-boost of buyers flow would enable an upturn toward the short term resistance at USD 236.5.
In presence of this pattern investors could take a buyer position on current levels in order to benefit of an upcoming upward movement. A stop loss should be set below the medium term support.