Since the improvement in trade discussions, some of the Chinese internet names have taken on a new look. JD.com (JD), Alibaba (BABA) and Baidu (BIDU) are all sporting improved charts. In addition, the Shanghai market broke out to 6-month highs last week. While everything has that new feeling regarding US-China trade tensions, the investors are picking up these names.
BIDU has a few nice features showing up on the chart. The SCTR has moved above 75, making it apparently one of the fastest-moving stocks in the mid-cap group. The downtrend in relative strength (shown in purple) has stabilized and is now at 6 month highs.
Price has broken the long downtrend as well as the 6-month horizontal base. To cap it off, momentum is moving up above zero for the first time since mid-2018.
These names look great heading into 2020.
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies
Want to stay on top of the market's latest intermarket signals?