Baidu (BIDU) Daily Linear Scale

Before we get into this most interesting stock, it’s worth reminding the reader
that employing Wave Analysis on stocks or ETFs is very difficult and probably a
useless endeavor. So, it is with some trepidation that I present this analysis….

This looked like a “terminal” conclusion, but it was

NOT, because the market failed to completely
retrace the proposed terminal wave.

There is not much of a price history on BIDU, but the bigger picture suggests the move up off
the lows “should” be a five wave advance. One of the reasons I had trouble counting the total
advance as an “impulse” was because of how it began. The channel highlighted here did
NOT look impulsive at all. It looked corrective in nature. However, after some study and
consideration, it is possible to view the entire advance as an impulse nearing a conclusion.

Andy’s Technical Commentary__________________________________________________________________________________________________

 Baidu (BIDU) Daily Log Scale
- III - (D)
(V)
“5” (B)
“3”
“1”

(E)
“b”
“4”
( C ) - IV -
“d”
On a linear scale, this Wave (III) looks “2”
like a “fifth extension,” where the wave ( III ) (A)
“5” was equal to waves “1” through “3”
“5”
“e”
“c” Because the (C) Wave here was not an “impulse,” a
( IV ) Triangle is strongly favored. Also, this would make
sense if it was a larger degree Wave -IV-. This
“3” would be considered a powerful “running triangle,”
something the yields stronger than normal “thrusts.”
“a”

“4”

“1”

“2” What this model implies is that we are in the final stages of a major impulsive
advance. But, what’s a reasonable concluding target?
( II )

-I- (I)
This action appears to be a rare “Triple Running
Three” correction. These presage powerful impulsive
moves, which was the case here.

- II -

Andy’s Technical Commentary__________________________________________________________________________________________________

 Baidu (BIDU) Daily Linear Scale

If this is an “impulse” from the lows, then the first waves were “microscopic” in
nature relative to the entire wave structure. In such cases, there’s only a couple
of decent fifth wave targeting tools. One good one is that the fifth wave will end
up being 38.2% of the entire wave…..

(V)

( III )
( IV )

For instance, look at the proposed “impulse” that made up the Wave -III-. The
final Wave (V) ended up measuring very close to 38.2% of the overall wave. So,
what might that mean for the larger wave structure?

( II )
(I)

Andy’s Technical Commentary__________________________________________________________________________________________________

 Baidu (BIDU) Daily Linear Scale -V-

I wonder if we get fractal similarity with a Wave -V- that looks like the
lesser degree Wave (V). If so, we should expect a “first extension”
impulse that will look like a “wedge.”

- III -
(V)

- IV -

( III )
( IV )

If the Wave -IV- concluded around 406, one possible target for the fifth wave would be 596. Out
of interest, I’ve also drawn the Elliott Wave channel (dashed blue) that would encompass the
“impulse.” Although, I’m not certain it is appropriate to even attempt an EW channel on a linear
-I- (I) ( II ) chart that covers this much price territory.

- II -

Andy’s Technical Commentary__________________________________________________________________________________________________

 Baidu (BIDU) 120 minute
(I)
“5”?
On the intraday chart, we’re now seeing some divergence and signs that
short term momentum is beginning to wane. Perhaps the initial Wave (I)
“3”
of -V- is nearing a conclusion? Short term wave counting on BIDU looks
difficult thanks to the price gaps and potential missing waves. BIDU bulls
looking for the last rally to 596 will not run into problems unless it takes
out 450 decisively. The gap up from that zone looks like it needs to be “4”?
tested.

“1”

“2”

- IV -

Little bit of divergence developing

Andy’s Technical Commentary__________________________________________________________________________________________________

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