Stock price for Baidu.com (NASDAQ:BIDU), the largest search engine in China, broke through $300 four times in 2009 but could not stay there for more than three days in a row. Three times out of four instances when share price close above the $300 mark the stock price succumbed to profit taking the next day and fell below the mark. As the following chart testifies $300 became a true resistance level for the stock and unless market sentiment improves, or Baidu issues another blockbuster quarterly report, investors will have to accept current stock price.
The good news is that Baidu is prone to jump big and thus cover large gaps just in a few trading days. For statistical purposes we separated updays from days when Baidu.com Inc. (NASDAQ:BIDU) fell. Our study shows that Baidu jumped $5.9 on an average day during the last four month and with a standard deviation of $4.1, Baidu makes a $10 jump from one day to the next 60% of the time. It means that with a current price of $289, BIDU can be $300 the next day, easily. Enjoy the ride!
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