What To Expect From BIDU Stock in October?

At the end of August, Baidu’s (BIDU) stock price commenced a bullish rally, rising from the support level of $123.90. The stock price gained bullish momentum, hoping to break the resistance level of $156.50, but the bullish move was halted as soon as the price reached near $147.

BIDU stock price faced strong rejection from $151, which induced a negative sentiment. The bears wanted the stock price to stay below $150.

After the rejection, the BIDU stock price entered a corrective phase and started to melt. Recently, BIDU stock price formed support at $127 after printing a bearish candle for 12 consecutive trading days.

The last two candles closed bullish, above the $130 psychological level. If the bullish momentum prevails, the stock price might retest the resistance level of $147. On the other hand, if bears push the price below $130, it might melt down toward the recent support of $127.

Quarter 3 Earnings Expectations

Baidu presented an immersive quarter 2 financial report, which paints an encouraging picture, with a 15% rise in revenue to $4.7 Billion and an increase of 42% year-over-year earnings per share.

BIDU’s real catalyst is its unmatched AI prowess. The company recently launched its ChatGPT rival, Ernie Bot. Baidu has carved out a niche, integrating advanced natural language processing (NLP) tools that transform searches, offer tailored recommendations, and breathe life into intelligent chatbots.

Wallstreet expects the third quarter revenue to increase by 5.9% to $4.82 billion year over year. The earnings per share is expected to rise by 4.6% yearly to $2.47. Baidu has topped its revenue and EPS estimates in the trailing four quarters, showing strong growth.

Will BIDU Stock Price Retest the $147 Resistance Level?

The stock price has declined below 20,50,100, and 200-day exponential moving averages, suggesting bearish momentum. However, BIDU stock price has jumped after forming a support level of $127 and will soon cross the 20-day EMA if bullish momentum prevails.

The Chaikin money flow score has dropped below the 0 mark and stands at -0.20, indicating weakness in the market. The relative strength index has witnessed a slight surge and stands at 44.31, nearing the neutral mark, implying a rise in the participation of bulls in the market.

Conclusion

Baidu has broken the bearish streak and is now showing potential to retest the $147 level. BIDU stock price has closed above $130, which provides slight confirmation regarding a bullish move toward $140. Technical indicators also suggest active participation of bulls in the market.

Technical Levels

Major support: $127 and $123.90

Major resistance: $147 and $156.50

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing