More downside is likely for Baidu

Baidu (BIDU) is the Google in China and has a monoply position given Google has been driven out from the market. It is certainly a great business but even a good business may also face some hicups. Technically BIDU is presenting a rather dire prospect at least for near future. As you can see below, since late last year when BIDU peaked at $250, it has entered a very well defined downtrend. The recent missed earnings may further push it down to a lower level. It has broken out its support around 175. Given being a little bit oversold, it may bounce back to 175, a resistance now. I doubt it can break this out. If I'm right, look for more downsides for BIDU. Its next strong support will be around 150.