a lot of churning and no price movement,on a very strong market

http://www.tradershuddle.com/20101021103926/TraderNextDoor/analyzing-baidus-technicals-ahead-of-earnings.html

New York, Oct 21st (TradersHuddle.com) – Shares of Baidu (NASDAQ:BIDU) closed Wednesday’s trading session fractionally higher, barely hanging on to the $100 level. Baidu will be reporting earnings later today after the market closes; therefore current price action analysis should assist traders in looking at their entries for a play into earnings.

Baidu provides Chinese language Internet search services primarily in China and Japan. The Company offers algorithmic search, enterprise search, pay for performance and news, MP3, and image searches.

Baidu stock attempted to breakout last Monday as the price action moved above $101 breaking the tight narrow range and reaching a high of $105.68 just shy of its 52 week high currently set at $107.19. The fact that there was no follow through today, on a very strong market it’s a reflection where traders were shy to take positions before earnings.

Volume has been above average during the last few weeks of consolidation, which indicates a lot of churning and no price movement, which frustrates both buyers and sellers. Obviously earnings could serve as a catalyst either way, and this is why we need to review the resistance points and support levels.

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