Baidu offers upside due to low valuation (forward P/E ~8) and technical bounce from support; expected to rise in coming days.
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Another graph I'd like to highlight for you guys is "Baidu". I have shown you, guys, this Chinese arrow. I said, "Listen, if there's one group of stocks I'm optimistic about right now, it's Chinese stocks."
You might ask: "Okay, why? You know it's at its lowest level in 52 weeks. The charts look terrible." That's why I admire her.
If you look at companies like Baidu, even with lower earnings forecasts due to China's recession, they are trading at a forward price-to-earnings ratio of around eight. Baidu and Alibaba are very similar to Amazon.
Now, it should not be traded with Amazon's rating. Again, Amazon is a completely different company in the United States, but again, these ratings and these technical patterns look really good.
Indeed, we witnessed the beginning yesterday, and look at this double factor. You have a parallel downtrend line here with this main support structure there. They met, the price hit it directly on Friday, bounced back yesterday, and is rising again today.
I expect Baidu and Alibaba shares to rise further in the coming days.
So, that was a good little deal. I still believe there is more upside on this chart.
What this channel has said about $BIDU
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