BIDU, Baidu Inc.

BIDU 2012BIDU s 2012

Baidu, the Chinese equivalent of Google reported better than expected earnings and shot yp as a result. In the detailed picture it is clear that the 5th wave of C was a “diagonal” and consequently the stock should go at least to $125, and do so fast. In the big picture a case can be made that the entire sideways movement for the last year or more is a flat A-B-C, perhaps regular, perhaps irregular but almost certainly a flat (3-3-5). Chance are that this is then a 4th wave of the larger up trend that has lasted for all these years. If correct a 5th is missing, or seems to be missing. (There are a number of different counts that would lead to very different conclusions). Use stops when playing this from the long side.