Baidu Inc (ADR) (NASDAQ:BIDU) HEFFX Highlights

Baidu Inc (ADR) (NASDAQ:BIDU) HEFFX Highlights

Baidu Inc (ADR) (NASDAQ:BIDU) HEFFX Highlights

  • Wei climbs into her car and tells it her destination. While the car manoeuvres through the morning traffic, her news app picks the stories she is most likely to enjoy and reads them aloud. As the car approaches the parking lot, a camera recognises her face and opens the gates.
  • This is the future that China’s search engine giant Baidu envisages, where artificial intelligence has made phone screens and computer monitors obsolete.
  • The AI revolution will be the next industrial revolution, the company says. The problem, as Baidu admits, is that it has already been late to the mobile revolution.
  • When desktop-based browsers were the portal to the internet, search engines found it easy to generate revenues. But mobile interfaces limited the number of adverts on a screen, as well as dividing up the internet into closed app-based fiefdoms, such as Tencent’s WeChat, which have become their own portals to the internet.

Baidu, Inc. is a Chinese language Internet search provider. The Company offers a Chinese language search platform on its Baidu.com Website that enables users to find information online, including Webpages, news, images, documents and multimedia files, through links provided on its Website. In addition to serving individual Internet search users, the Company provides a platform for businesses to reach customers. Its business consists of three segments: search services, transaction services and iQiyi. Search services are keyword-based marketing services targeted at and triggered by Internet users’ search queries, which mainly include its pay-for-performance (P4P) services and other online marketing services. Its transaction services include Baidu Nuomi, Baidu Takeout Delivery, Baidu Maps, Baidu Connect, Baidu Wallet and others. iQiyi is an online video platform with a content library that includes licensed movies, television series, cartoons, variety shows and other programs.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 232.55.

The projected lower bound is: 210.58.

The projected closing price is: 221.57.

BAIDU INC ADS closed up 0.700 at 220.690. Volume was 30% below average (neutral) and Bollinger Bands were 54% narrower than normal.

Open            High           Low            Close            Volume
216.000      221.700      213.528      220.690      2,033,732

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period       50-period      200-period
Close:                       223.26            203.51            182.63
Volatility:                23                    33                    27
Volume:                   2,459,778      2,940,106      2,428,406

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

BAIDU INC ADS is currently 20.8% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of BIDU.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BIDU.O and have had this outlook for the last 34 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 34.1925. This is not an overbought or oversold reading. The last signal was a sell 17 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 55.18. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 8 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -173.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 12 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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