Baidu.com (BIDU) Holds Tough

Last week I looked into Baidu.com (BIDU) after the stock gapped higher on the heels of a solid earnings report. What I found encouraging about the stock was that analysts were mostly sitting on the sidelines, offering the opportunity for upgrades. (That is still the case as data from Zacks shows that just 2 of 10 analysts continue to rank the stock with a "buy" rating.

On the downside, that concern came from the chart as the stock was pushing into resistance and showing short-term overbought readings. On that front, the stock has been acting somewhat encouraging. As you can see below, the shares have backed off away from the site of the January peak but the drop has been controlled and fairly muted, relative to the gap. In other words, the stock is still holding a good portion of the gap, which I consider a healthy technical sign.

If you are interested in another view on Baidu, you might want to check out this video on Wallstrip. They do a pretty good job of giving you an overall feel for what the company does....