Baidu Stock Jumps 4.10% To Extend 4-Day Rally To 7.10% On Bullish Technicals

Comprehensive Technical Analysis: Baidu (BIDU)
Baidu (BIDU) rose 4.10% in the latest session, extending gains to four consecutive days with a cumulative increase of 7.10%. This momentum warrants a multi-dimensional technical assessment using the required framework.
Candlestick Theory
Recent price action shows a "Three White Soldiers" pattern emerging after the sharp decline on 2025-07-16 (-7.48%), signaling strong bullish reversal conviction. The latest session’s long green candle closed near its high ($92.45), overcoming the previous resistance at $90.35. Immediate resistance is observed at $93.37 (2025-07-22 high), while support rests at $89.40, aligned with the 7/15 bullish gap’s midpoint.
Moving Average Theory
The 50-day moving average (MA) has flattened near $88.50, and the price’s recent surge above it suggests short-term bullish momentum. However, the 100-day MA ($90.20) and 200-day MA ($92.80) remain overhead resistance. A sustained break above $93 would signal a potential long-term trend reversal, but confluence with the 200-day MA may cap upside.
MACD & KDJ Indicators
The MACD histogram turned positive on 2025-07-21, confirming bullish momentum as the signal line crossed above the baseline. KDJ shows the %K line (77) crossing above %D (70), supporting near-term strength. Both oscillators avoid overbought extremes (MACD: -0.35; KDJ: 77), leaving room for further upside.
Bollinger Bands
Bands contracted sharply ahead of the 7/16 sell-off, reflecting low volatility before the breakdown. Recent expansion aligns with the rebound, and the price now tests the upper band ($92.80), suggesting potential short-term overextension. A close above this band would signal exceptional strength, though mean reversion toward the midline ($89.50) remains possible.
Volume-Price Relationship
Volume surged to 13.7M shares on 7/16 during the sell-off, indicating panic selling. The subsequent recovery saw rising volume (4.2M → 6.9M shares), validating accumulation. The latest session’s volume (6.9M) exceeded the 20-day average, supporting bullish sustainability. Notably, the 7/15 rally (12.0M shares) confirmed institutional interest.
Relative Strength Index (RSI)
The 14-day RSI (64) is rising but remains below overbought territory (<70), indicating balanced momentum. RSI bottomed at 28 on 7/16 (oversold), aligning with the reversal. While not yet signaling exhaustion, proximity to 70 warrants caution.
Fibonacci Retracement
Using the downtrend from the 2025-04-11 peak ($95.15) to the 2025-07-16 trough ($86.01), key retracement levels are $90.58 (50%) and $93.37 (61.8%). The current price ($92.45) tests the 61.8% resistance, a breakout target. Failure here may retest $90.58 support.
Confluence & Divergence
Confluence is evident at $93–$94: resistance combines the 61.8% Fibonacci level, 200-day MA, and Bollinger upper band. A decisive break would signal a robust trend shift. No material divergence exists—MACD, RSI, and volume align with price recovery. However, KDJ’s overbought reading (77) slightly conflicts with RSI’s neutrality, hinting at near-term consolidation.
Conclusion
Baidu’s technical structure favors cautious upside, supported by bullish candlestick patterns, MA crossovers, and volume confirmation. The $93–$94 resistance zone is critical; a close above it may accelerate gains toward $97.50 (78.6% Fib). Failure could retrace to $89–$90 support. Traders should monitor volume for breakout validation and RSI for overheating signals. Probabilistically, momentum likely persists near-term but faces formidable resistance at multi-indicator confluence.