The Writing's on the Wall: MCLN, CHKP, BIDU
Check Point Software Technologies, Baidu.com, and MedClean Technologies are put under an intense trading review.
The chart shows why this may be so. Both of the key falling trend (and resistance) lines, marked in orange, have been broken, as have all the key moving averages that had been problems since early 2010. Here's the kicker - MedClean Technologies has made this move on huge swelling volume. While we should see a healthy pullback from here, the bullish damage has been done.
A few days ago we mentioned that Baidu.com, Inc. (ADR) (NASDAQ:BIDU) was trying to punch through a falling resistance line (blue), aided by the pushoff of the 20-day moving average line. Since then - and albeit barely - BIDU has managed to make a couple of closes above that ceiling.
It would still be nice to see one good push above that resistance line, but once again, after a three-month brewing period there's an explosive move higher in the works here. Traders are strongly advised to keep close tabs on Baidu.com shares, watching for the move that seals the deal.
And finally, Check Point Software Technologies Ltd. (NASDAQ:CHKP) started to slow up a few weeks ago, but today looks like it was the final blow. The 3.8% tumble CHKP took today wasn't all that big, but it was very eventful in that it pulled this small cap under the all-important 50-day moving average line....
.... not that it's a big surprise. Check Point Software Technologies raced into an overbought condition of late December. This was bound to happen. The (really) bad news is not so much the beginning of the breakdown, but that Monday was the second high-volume selloff this month. The sellers aren't messing around here.