With the market weakness seen last week, the BIDU share price moved below the lower boundary of a topping pattern confirming a significant top is in place. It's also notable that the CQQQ and KWEB ETFs have been significant under performers in the US, suggesting underlying weakness in the space.
The price target from the topping pattern is ~150. However, as always, timing is key here. Whilst I'm expecting further weakness in equity markets both in the US and globally as discussed here, price could conceivably move back toward 215 -220 before failing again.
Any sustained move higher that remains in the zone of the pattern then I would turn back to neutral on the name. It would take a move to new all time highs before getting bullish on the name again.
Thank you!
I was searching for some shares with shorting potential.
I like to check Tesla, but I won't short it because it doesn't corrospond with my old TA patterns.
Assuming a huge stock crash I'am searching for some stocks that are reversing, Baidu seems interesting and have short possibilities by my broker.
Market seems like it's going to crash and I want to make some shorts to profit from the ride down.
I was also checking for Galapagos and Pharming.
There are a lot of support levels in the US that need to be broken before we can call for significant downside let alone a crash. Besides, any significant market decline doesn't occur overnight and there would be plenty of volatility that would squeeze traders out of long-term shorts. I think it's more important to be focused on the here and now and manage risk accordingly. Keep an eye on my blog, I've written about a few other shorts on there and there are plenty more setting up but timing will always be key.
Yeah, okay. Be carefull with high levarage shorts.
For the moment I'am slightly bullish, a little market recovery to some previous support levels, which will now become resistance.