Market News

October 28, 2011  Fri 1:05 PM CT

Baidu triggered a bullish pattern after beating earnings estimates last night and gapping higher this morning.

On the daily chart below I have outlined a bullish "cup and handle" formation in dark blue that became active when BIDU rose above $140. The breakout level is shown with an orange horizontal line.

The upside potential for the pattern, if it remains active and completes, is to the $160 area. Beyond that price, there is a potential secondary level at the $180 area, which is literally off the chart.

Shares of the Chinese Internet giant are trading at $144.58 this afternoon, up 4.47 percent on the day.

BIDU

(Chart data provided by Thomson Reuters)
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