Early last year with the stock at $80 I called out $BIDU's bullish chart pattern.




The stock has rallied over 100% from those levels.

Recently the stock, after hitting fresh all time highs at over $190 a share, has seen a massive reversal.  I think the reversal has found some support here at current prices, namely the $140 level, and looks poised for a recovery back over the $160 level.

If we've learned anything about trading $BIDU, its that the stock can move quickly in either direction.  The $50 drop from all time highs has happened swiftly, I think the reversal higher will be just as swift.

The best part of this trade idea is that the call options are not pricing in a sharp reversal higher.  I currently own some call contracts and will be looking to add as the week progresses.  Just like I called out the lows last year when the stock was at $80, I think we may have seen the lows for $BIDU this spring.

I think its BUYDO and not BIDONT for the short term.  After the stock moves back over the $165 level we can re-evaluate.



Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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