Baidu Stock Jumps 6.56% to Extend 7-Day Rally with 20.91% Gain

Baidu (BIDU) concluded its most recent session with a notable 6.56% surge, extending its winning streak to seven consecutive days and accumulating a 20.91% gain over this period. This momentum has propelled the stock to a close of $108.65, reflecting heightened bullish sentiment. The following technical analysis assesses key dynamics across multiple frameworks.
Candlestick Theory
Baidu’s price action reveals a sustained bullish trend characterized by successive green candles, culminating in a long-bodied candle on September 8. This pattern signals strong buying pressure and breakout momentum. Key resistance is observed near the $111.31 intraday high from the latest session, which represents an immediate psychological barrier. Support now solidifies around $101.96 (September 5 close), where consolidation previously occurred. A breach below this level may indicate profit-taking, though the absence of reversal patterns like dojis or shooting stars suggests underlying strength.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bullish alignment. As of the latest close, the 50-day MA (~$94.50) has crossed above both the 100-day (~$92.80) and 200-day (~$89.60), confirming a golden crossover. This configuration signals strengthening intermediate-term momentum. The current price trades firmly above all three averages, reinforcing the uptrend. Notably, the 50-day MA acted as dynamic support during the mid-August pullback, underscoring its relevance for trend continuity.
MACD & KDJ Indicators
The MACD histogram displays expanding positive momentum, with the signal line maintaining its position below the MACD line since late August—a classic bullish configuration. This aligns with KDJ readings, where the %K line (84) remains elevated above the %D line (78), though approaching overbought territory. While KDJ’s overbought threshold (>80) warrants caution, the MACD’s sustained upward trajectory suggests the trend may extend. A potential divergence would emerge if price advances while MACD momentum plateaus.
Bollinger Bands
Bollinger Bands highlight expanding volatility, with the price piercing the upper band ($107.50) on September 8—a sign of strong bullish momentum. This breakout follows a period of band contraction in August, indicating a volatility squeeze resolution. While prices above the upper band may foreshadow a short-term pullback, the expansion phase supports continued upside if volume confirms. Immediate support rests at the 20-day moving average (mid-band, ~$102), which has guided the trend since late August.
Volume-Price Relationship
Volume trends validate the rally’s sustainability. The seven-day advance was accompanied by rising volume, peaking at 13.8 million shares on September 8—well above the 30-day average. This volume surge during breakout sessions signals conviction. Notably, the August 29 advance (4.76% gain) also saw high volume (10.9 million shares), reinforcing key support zones. Declining volume during minor retracements (e.g., September 3) further indicates limited selling pressure.
Relative Strength Index (RSI)
The 14-day RSI (75) resides in overbought territory (>70), reflecting the intensity of the recent surge. Historically, Baidu’s RSI has demonstrated resilience near 75 without immediate reversals (e.g., mid-July). While this suggests near-term exhaustion risk, its warning nature must be contextualized: strong trends can sustain overbought readings. Confluence with volume and MACD momentum diminishes bearish implications, though a dip below 70 could signal consolidation.
Fibonacci Retracement
Applying Fibonacci retracement to the dominant uptrend from the April 2025 low ($76.86) to the September 8 high ($111.31), key levels emerge. The 23.6% retracement ($102.60) aligns with the September 5 support and coincides with the 20-day Bollinger Band. The 38.2% level ($97.50) overlaps with the 50-day MA and July resistance, creating a high-confluence support zone. The 61.8% retracement ($90.60) converges with the 200-day MA, offering a robust floor. These retracement levels offer strategic entry points during pullbacks.
Confluence and Divergence Observations
Confluence is evident between the $102–$103 zone (50-day MA, Bollinger mid-band, and 23.6% Fibonacci), which serves as critical support. The MACD, volume, and moving averages unanimously affirm bullish momentum. A minor divergence exists with RSI nearing overbought territory while price hits new highs, though this lacks confirmation from other oscillators. Should price retreat amid sustained MACD strength or elevated volume, it may represent a bullish consolidation rather than reversal. Probabilistically, the weight of evidence suggests upside continuation toward the $115–$120 resistance area, contingent on hold above $102.