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Bidding On BIDU

When trades come along which offer potential on multiple timeframes, I always perk up.  If one timeframe doesn’t appeal to me, the other can still add to my account.

BIDU is one such setup right here.  The channeling stock [1] has been range-bound since early May, and a breakout may be coming soon from this rectangle pattern [2].  Upper resistance is well-defined, offering day traders a quick-hit setup for an intraday breakout play.  But with confirmation of a breakout – meaning, a close above that resistance level – swing traders also have a shot at a measured move [3] to develop in the coming weeks for a $12 advance to the $90 area.

A breakout could come any day in BIDU, so I’ve got it on my radar for a trade if it can push through the $78.65 resistance area. This one doesn’t have a real clear-cut exit as a swing trade, so it isn’t one I’m planning to keep a long time… Just long enough to get paid and move on to the next idea.

Here’s a closer look for you:


Chart courtesy of Worden [4]

Trade Like a Bandit!

Jeff White
Swing Trading & Day Trading Service
www.TheStockBandit.com [5]

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