Monday, January 27, 2014

Volume Off the High- Jan 23 Trading Day Edition

Many a name came off their highs in last Thursday trading, with most being earnings related. One that did stick out to me was BIDU, which was off after the SEC essentially called into question the integrity of Chinese auditing firms (wow, that is a little late to game.). Technically speaking, BIDU looks weak, as it not only broke its 50 day moving average on volume, but also moved through the Oct. 30 resistance level. The next price/volume resistance is the gap that opened between the $110 and $120 price level, some $40 lower from present prices. Although a judge's ruling may not be the omnipresent reason for a gap to close it still bears watching.

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