Last night, Nasdaq-listed Baidu gained 4.79% to close at a $224.80, just shy of its all-time high of $226.50, recorded in July.
According to reports, Baidu will release a smart device that will be used in e-commerce. There has been speculation over the past year that the company has been working on a string of products to break into the wearables market, including operating systems for smartwatches and health-monitoring wristbands. It’s also reported to be working on a driverless vehicle, following in Google’s footsteps.
At last year’s conference, the company launched software called ‘Light App’ that would be able to run other apps without having to install them. This was targeted at low-frequency-usage apps, such as those related to travel or restaurants.
Baidu was also in the news last week for its part in a $814 million e-commerce joint venture which will take on Alibaba. The other two partners are property giant Wanda and China’s largest Internet company, Tencent.
How is the stock price moving?
Baidu’s stock price had jumped by nearly 10% in late July on its robust earnings release, but has since largely been in a period of consolidation.
This week, it has broken out of a wedge and looks to be continuing its long-term uptrend. It has crossed over above the 20 DMA to touch the upper limits on the Bollinger bands, reflecting the bullish sentiment. There is also a positive buy signal from the MACD.
However, what investors may want to watch out for is the RSI indicator, which looks to be moving toward 70. This would suggest the stock has been overbought, and signal that a pullback may be on the cards in the interim. This will present an opportunity for more conservative investors to enter on the dips.