Baidu Plunges 8.09% as Technical Indicators Flash Bearish Signals

Baidu (BIDU) declined 8.09% to $125.57 on 2025-09-23, closing near the session low of $124.90 on elevated volume. This substantial drop interrupts a volatile two-week pattern that included an 11.34% surge on 2025-09-17. Technical analysis reveals critical dynamics across multiple indicators.
Candlestick Theory
Recent candlestick patterns show Bearish Engulfing formations on 2025-09-18 and 2025-09-23, confirming rejection near the $137-$138 resistance zone established on 2025-09-17. The latter session’s long red candle with a close near its low signals strong selling momentum. Key support now resides at $116.86 (2025-09-16 low), while overhead resistance is firm at $138.00 (2025-09-17 high) with secondary resistance at $132.40 (2025-09-23 high).
Moving Average Theory
The 50-day moving average (115.24), 100-day MA (105.75), and 200-day MA (95.50) maintain a bullish alignment (50>100>200). However, the price has now closed below the 50-day MA for the first time since early September. The current price ($125.57) sits 8.1% above the 50-day MA, testing this dynamic support level. Failure to hold here may trigger a move toward the 100-day MA confluence zone near $105.75.
MACD & KDJ Indicators
The MACD histogram turned negative on 2025-09-18 as the signal line crossed below the MACD line, preceding the latest decline. Concurrently, KDJ shows bearish conditions: K-line (29.4) and D-line (40.1) plunged below 50 after residing in overbought (>80) territory during mid-September’s rally. While both oscillators now approach oversold thresholds, their negative momentum slopes lack reversal confirmation. A notable bearish divergence occurred when the price achieved a higher high ($141.60 on 2025-09-22) while MACD and KJD registered lower highs.
Bollinger Bands
Bollinger Band width contracted 18% during the week preceding 2025-09-23, signaling reduced volatility before the breakdown. Price closed below the lower band ($127.80) on 2025-09-23—an event occurring only twice in the prior year. This outlier positioning suggests either an oversold bounce or continuation of volatility expansion. The 20-day moving average midline ($132.50) now serves as resistance.
Volume-Price Relationship
The 8.09% decline occurred on 11.4 million shares—48% above the 30-day average volume—confirming distribution. This follows similarly elevated volume during the 2025-09-17 rally (19.9 million shares), creating a high-volume reversal cluster near $138. Volume divergence is evident in the current downtrend, with sell-off volume exceeding preceding accumulation volume, increasing sustainability concerns for the bearish move.
Relative Strength Index (RSI)
The 14-day RSI (34.2) exited overbought territory (>70) on 2025-09-19 and now approaches oversold (<30) levels. Average losses over the calculation period are 1.8× larger than average gains, reflecting bearish momentum. While an RSI reading near 30 may indicate temporary exhaustion, oversold thresholds are less reliable during high-momentum breakdowns—particularly given the lack of bullish divergence.
Fibonacci Retracement
Using the swing low of $116.86 (2025-09-16) and high of $138.00 (2025-09-17), key Fibonacci levels cluster around $129.90 (61.8%), $127.43 (50%), and $124.94 (38.2%). The 2025-09-23 close ($125.57) marginally holds above the 38.2% retracement support. A sustained break below $124.94 projects vulnerability to the 61.8% extension level at $110.04, though volume-supported bounces near this technical floor remain plausible. Confluence exists with the psychological $125.00 level and Bollinger Bottom at $127.80.
Confluence occurs at $124.94-$125.57 (Fibonacci 38.2%, Bollinger lower band, and psychological support), though RSI and KDJ oversold signals remain unconfirmed by reversal patterns or volume contraction. Bearish divergences in MACD/KJD and elevated sell-off volume outweigh potential rebound signals, creating a negative near-term bias.