Baidu (BIDU) Daily Log Scale

- V -??

Markets ONLY peak on bullish news and fundamentals. What could

be more bullish than the news that your only competitor is leaving
the marketplace? This is the enviable position Baidu finds itself
upon Google’s withdrawal from the Chinese market. That’s really - III -
(V) (D)
bullish, right?
“5” (B)
“3”
“1”
“b” (E)
c “4”
“d” ( C ) - IV -
( III ) “2”
(A)
“5” a
“c” “e”
( IV )
“3”
b
“a”

“4”
“1”

“2”
BAIDU displayed “power” every step of the way, even during the “corrective moves.”
The Wave (IV) was an “irregular” triangle [big “b” wave”] which is more powerful than
“x” a typical contracting triangle. The Wave -IV- was a “running” triangle, where the (B)
“y”
and (D) waves are larger than the preceding (A) and (C) legs. Such triangles yield
( II ) powerful “thrusts” when completed. The important question now is whether or
not BIDU has completed a major advance yet.
-I- (I)

The Wave (II) was probably a “Double Three”

Running Correction--it ended with a triangle.
“w”

- II -

Andy’s Technical Commentary__________________________________________________________________________________________________

 Baidu (BIDU) 90 Min. Log Scale ( III )
“5”
629
A “truncated” Wave (V)
coming?
BAIDU looked to have “blown-off” on the Google news, but the subsequent decline
looks more “corrective” than anything else. Therefore, one more push higher would
seem an order. Given the extremely emotional nature of the Wave (III) panic move,
some sort of “truncated” (diagonal) Wave (V) would not surprise. The next push
might look corrective and fail to better the $630 panic top.
“3”
( IV )
“4”
“1” This has the “feel” of a
triangle development.
“x”
(I) “2”
This looks like a “fifth
“5”
extension” Wave (I)
“y”
(D) “w” ( II )

“3”

“1”
“4”
“2” Based on the dramatic nature of the $629 peak on spectacularly great
“news” and the huge amount of panic buying into that level, it would
be a surprise to see $629 bettered.
407
(E)
- IV -

Andy’s Technical Commentary__________________________________________________________________________________________________

 Baidu (BIDU) 90 Min. Log Scale ( III )
“5”
629
A “truncated” Wave (V)
coming?

The “alternative” count is the Wave (E) finished at 432. There is some merit to this
concept because of the way the market “thrusted” from that point--in other words, it was
the signature of triangle conclusion. If this is the count, it actually increases the
chances of a “failed” or truncated Wave (V), a move that cannot better the $629 high.

“3”
( IV )
“4”
“1” This has the “feel” of a
triangle development.
“x”
“2”
(I)

“y”
(D) “w”
( II )

432
(E)
- IV -

Andy’s Technical Commentary__________________________________________________________________________________________________

 Baidu (BIDU) Daily Linear Scale

- V -??
BIDU has busted out of a channel here. R.N. Elliott described this as a “throw over,” “Throw Over?”
when a market temporarily bursts out of the channel in a final bout of volume buying.
In order for this to be considered “throw over,” it must reverse and get back under the
broken channel.

- III -
(V)

- IV -

( III )

( IV )

-I- (I) On the February 27th report, we suggested $595 as the best target for BIDU. That was
( II ) based on a Wave -IV- conclusion at $406 and Wave -V- occupying 38.2% of the entire
advance. So far the market has failed to settle above $595. If the Wave -IV- actually
concluded at $432, then the same targeting principle would yield a $637 objective for the
final fifth wave.
- II -

Andy’s Technical Commentary__________________________________________________________________________________________________

 Baidu (BIDU) 90 Min. Log Scale

If one wants to remain bullish on Baidu, then it’s important to identify some critical
support points. The first level of support should be the 544-549 zone. This is the point
from which BIDU launched the panic buying phase. There should be buying at that
zone again, so a break of $544 would signal that all buying power has been exhausted
in the short term. The next big support is far lower at $465-470, the point at which the
market gapped higher and broke previous resistance. This zone should be strong
support on the first go.
544-549

465-470

Andy’s Technical Commentary__________________________________________________________________________________________________

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