Baidu Stock Surges 13.47% in Six-Day Rally Nearing Key $102 Resistance

Baidu (BIDU) has demonstrated notable momentum, advancing 3.82% to close at $101.96 in the most recent session and marking its sixth consecutive daily gain, with a cumulative 13.47% rally over this period. The stock now trades near critical technical levels, warranting a multifaceted assessment using established methodologies.
Candlestick Theory
Recent price action reveals a robust bullish sequence, characterized by six successive white candles with higher lows and higher highs. The latest session’s long green body, closing near the daily peak of $102, signals strong buyer conviction. A critical resistance zone materializes at $102–$103, aligning with the March 2025 swing high. Support is established at $96.50, the August 29 pivot low reinforced by multiple bullish engulfing patterns during the ascent. A close above $103 would confirm breakout validation, potentially extending gains toward $110.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages now exhibit a bullish alignment, with the 50-day ($93.80) positioned above the 100-day ($90.25) and the 200-day ($88.70). Recent price surges lifted Baidu above all key moving averages, confirming a long-term uptrend. The 50-day MA accelerated upward after the July 15 breakout, while the 200-day MA provided reliable support during June-August consolidations. Golden crosses between the 50/100-day and 50/200-day averages in late July further fortify the bull case.
MACD & KDJ Indicators
The MACD histogram (12,26,9) remains in positive territory after a bullish crossover in mid-August, with the signal line acting as dynamic support during pullbacks. Meanwhile, the KDJ oscillator displays overbought conditions (K:78, D:71, J:92), though the sustained upward trajectory implies strength rather than immediate reversal risk. Divergence is absent, as both oscillators corroborate the rally’s momentum. Caution is warranted if the KDJ’s J-line retreats below 90 without price consolidation.
Bollinger Bands
Bollinger Bands (20-day SMA, 2σ) expanded sharply during the six-day advance, reflecting heightened volatility and directional conviction. Price has consistently hugged the upper band, indicating strong upside momentum. The bandwidth contraction preceding the breakout (late August) signaled a volatility compression phase, resolved bullishly. Immediate support rests at the 20-day SMA ($97.50), while a sustained close above the upper band ($102.50) may foreshadow overextension.
Volume-Price Relationship
Volume surged during key breakout sessions—notably the 11M shares traded on August 29 (+4.76%) and 7.3M shares on September 5 (+3.82%)—validating accumulation. The advance/decline rhythm shows higher volume on up days and lighter volume during minor pullbacks, confirming healthy participation. However, the past two sessions’ lower volume compared to August 29’s surge suggests near-term exhaustion risk if follow-through buying diminishes.
Relative Strength Index (RSI)
The 14-day RSI reads 73, entering overbought territory but without bearish divergence. Historically, Baidu’s RSI has peaked near 80 during extended rallies (e.g., March 2025 ascent), implying further upside potential before a material correction. Oversold readings below 30 in early May and late June preceded significant bounces. Current levels warrant monitoring for divergence or reversal patterns but do not yet signal an imminent top.
Fibonacci Retracement
Applying Fibonacci levels to the March–July 2025 downtrend (swing high: $105.19, swing low: $77.43) reveals key retracement thresholds. The 61.8% level ($94.80) recently acted as support during August consolidation. The current price approaches the 78.6% retracement ($102.50), aligning with the March resistance zone. A decisive breach above $102.50 opens the path to the 100% extension at $105.19, while failure here may trigger profit-taking toward the 50% level ($91.30).
Confluence and Divergence Observations
Confluence is evident near $102–$103, where Bollinger Band resistance, Fibonacci 78.6% retracement, and the March swing high converge. This zone presents a critical test for bulls. No material divergences exist among oscillators, though overbought KDJ/RSI readings juxtapose with MACD’s steady momentum. The unified volume-price confirmation during breakouts underscores trend sustainability. Should Baidu consolidate above $100, the technical structure would retain bullish probabilities toward the $110 region.