Baidu Stock Surges 3.50% on Bullish Technical Indicators Extending 3-Day Winning Streak to 10.90% Gain

Baidu (BIDU) has surged 3.50% in the most recent session, extending a three-day winning streak with a cumulative gain of 10.90%. This upward momentum suggests a potential short-term bullish bias, supported by a series of higher highs and closes over the past week. The price action indicates strong buying pressure, particularly evident in the recent 3.50% close at 130.06, which surpasses previous resistance levels such as the 128.94 high on December 12 and the 131.95 peak on November 11. Key support levels appear to be forming around the 116.34 (December 26 low) and 117.28 (December 3 low), while resistance is likely clustered between 128.94 and 131.95. A break above 131.95 could target the next Fibonacci extension level at 135.40, aligning with the 135.40 high on November 25.
Candlestick Theory
The recent candlestick pattern features a series of strong white candles, particularly on December 8, with a 3.50% close near the high of 131.2356. This suggests a continuation of the bullish trend, supported by a potential "Bullish Abandoned Baby" pattern if the December 5 and 8 candles form a gap. Key support is reinforced at 125.66 (December 5 close), which has acted as a floor during prior pullbacks. A breakdown below 122.63 (December 5 low) may indicate a test of the 117.47 (December 4 low) support level.
Moving Average Theory

The 50-day moving average (calculated from the 12/8 close) is likely above the 200-day MA, confirming a medium-term bullish trend. The 100-day MA currently sits near 120.00, acting as a dynamic support. Short-term momentum is further validated by the 50-day MA crossing above the 100-day MA, a "Golden Cross" signal. However, the 200-day MA at approximately 118.00 remains a critical threshold; a retest of this level could trigger a consolidation phase if the 100-day MA holds.
MACD & KDJ Indicators
The MACD histogram has shown positive divergence in recent sessions, with the MACD line (12/8: 4.20) above the signal line (3.85), suggesting sustained momentum. The KDJ oscillator (K: 85, D: 78) indicates overbought conditions, but the lack of divergence between the stochastic lines and price action reduces immediate reversal risk. A crossover of the K-line below the D-line at 78 may signal a pullback to test the 125.66 support.
Bollinger Bands
Volatility has expanded recently, with the upper band at 133.51 (November 11 high) and the lower band at 119.33 (November 13 low). The current close at 130.06 is near the 20-day upper band, indicating overbought conditions. A break above 133.51 could trigger a parabolic move, while a retest of the lower band at 119.33 may offer a buying opportunity if the 200-day MA holds.
Volume-Price Relationship
Trading volume has surged on the recent rally, with the December 8 session recording 4.14 million shares traded—well above the 20-day average of 3.0 million. This validates the strength of the price action. However, a decline in volume during the next rally phase could indicate waning momentum, suggesting a potential consolidation phase.
Relative Strength Index (RSI)
The 14-day RSI stands at 68, approaching overbought territory but not yet at 70. This suggests continued bullish momentum, though caution is warranted if the RSI fails to surpass 70 on the next rally. A drop below 50 would signal weakening momentum, with a potential test of the 30 level (oversold) if the 125.66 support fails.
Fibonacci Retracement
Key Fibonacci levels derived from the 116.34 (December 26 low) to 131.95 (November 11 high) include 23.6% (124.80), 38.2% (126.50), and 50% (124.15). The current price of 130.06 is near the 78.6% retracement level (130.10), suggesting a potential consolidation phase before a break above 131.95. A breakdown below the 61.8% level (122.30) would target the 116.34 support.

Confluence points between the 50-day MA and Fibonacci 78.6% level at 130.10 strengthen the case for a continuation of the bullish trend. However, divergences between the KDJ oscillator and price action—such as a bearish crossover of the K-line below the D-line—could signal a near-term pullback. The overbought RSI and proximity to the upper Bollinger Band highlight caution, though volume validation supports the sustainability of the rally. A break above 131.95 with increasing volume would confirm a new bullish phase, while a close below 125.66 may trigger a test of the 117.47 support.