I love both QIHU and BIDU but I see a strong case for a head and shoulders forming in the charts. Shorted at 98 and holding until it either breaks the neckline or breaks above the shoulder. IMO a break and hold above $100 will almost completely negate the possibility of a head and shoulders. However, until then I am holding short. Remember: The charts predict the news, not the other way around.
the stock needs to break the neckline of $76 before you can claim that - I pointed out this pattern months ago but just as a topic of interest. $76 is the line in the sand and I have made some amazing trades of the level.
Sentiment: Strong Buy
I totally agree with you. $76ish is the magic number. That is why the title ends with a question mark. I believe it has every characteristic of a head and shoulders including the right volume at the right times. But if you short at the top of the shoulder like I did, with a tight stop loss, you have very little to risk and much to gain! if I can ride from 98 to 76 then that will be plenty for me, but if it breaks 76 then great! 40's here we come. I do see it testing the neckline for sure though which is why my target is mid 70's. Then wait to see if neckline breaks..
oh and good going with calling the head/ sh pattern! it is playing out right now - and can also be seen on the yahoo 5 day chart that is to the right of this message board! so good going with that call chartreader :)
yes correct- the charts show what is happening with a stock - the news comes out AFTER the fact to take the stock to the price the charts were already showing was coming! it's too bad that some people like cybercash doesn't understand this relationship with charts and "the news" lol - but she says she knows lol nope- wrong!!! but chartereader knows for sure!! and he is absolutely correct in what he wrote re the charts and re "news" :)
good going chartreader for having the fortitude to write that on a message board (i've actually seen it written by a few people on these boards- much to my surprise lol)! i've written this many times myself on these boards (this was taught to me 2 yrs ago by a trader with over 30 yrs experience - i trust his guidance moreso than i do someone like cybercash- then i've seen it play out over and over again just how he taught me it does)- but was laughed at or mocked each time i wrote it - good to see others on these boards who understand this relationship with the chart and the news :)
The charts predict the news, not other way around????? Are you serious??
Good good ER can change the chart in a blink of an eye.
A buy out news can change the charts in.....1/1000000000 of a blink of an eye.
How many time the TA gurus said ..oh no oh no..SPY just went below ma-50? So it got to go to ma-200?
Oh no. No, NASDAQ H&S, big ones, especially weekly charts...
Where do charts come from?? A collection of data AFTER the trade transactions..AFTER AFTER AFTER!
Yes charts are very helpful an good tools but to say charts PREDICT the news is not accurate at all.
At the end of the day, when we buy a stock, we buy a business. It grows, stock grows. Short term volatility can easily be manipulated buy traders, short sellers for small float stocks. See AAPL, they can not be manipulated easily. See the float. can the manipulate GOOGL?
Good luck to all!
The chart is not clear on the head and shoulders pattern forming. But one thing is clear, the zigzag line goes "Upward" over 1 month or 3 months AND the support is upward. The support starts out at May at 70s, June at the 80s. I expect July support is going to be the 90s. If something like head and shoulder pattern forming, that would be the Inverse head shoulder pattern forming which indicates a break out in the near future.