Baidu Hits the Resistance Wall Again

Includes: BIDU, GOOG
by: Bespoke Investment Group

Google's (NASDAQ:GOOG) announcement that it was considering pulling out of the Chinese market helped boost shares of Baidu (NASDAQ:BIDU) by nearly 15% this morning.

As shown in the chart below, today's gap broke a downtrend that had been in place since late November.

While BIDU may have broken its downtrend and moved back above its 50-day moving average, the stock was unable to trade above its 52-week high of $443.25, which is a level that has been acting as resistance for a few months. (Click to enlarge)