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.
Good trading,
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies
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