While Baidu did continue its downtrend as I expected, I didn't expect it would have completed this correction so fast. Apparently the fast downward move was largely associated with the gigantic plummet of the Chinese market as well as the recent panic sell-off in the US market. Unless this kind of brutal sell-off continues relentless without a stop, I don't expect Baidu will easily give up its next strong support at $150. It will likely stand up on it but the million dollar question is if you can safely buy now. It depends on whether you want to trade or invest for long term. If you can act nimbly for trading, now is likely a good time to buy, aiming for a bouncing back. But be aware that its overhead resistance of $175 is not an easy target to break out. More likely it will be moving sideways for a while between 150-175 until some good news comes in to elevate it. Even after it successfully breaks out through 175, it is still within a much bigger downward channel. If it truly starts to show new life and begins a uptrend, it has to first break out decisively through the upper trend line of the descending channel. Only then, it will be safe to buy for long-term.
In a nutshell, Baidu may be a good buy for trading but it's too early to decide whether it is a safe buy for long-term. If you really like it and want to own some, buy a small portion first and watch for its high highs and high lows to establish an uptrend.
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