Each week I review several stock charts and trading setups and share the ones I like.
Today, I’m sharing two stocks that I like. Both are “pullback setups”: Baidu (BIDU) and Integrated Device Technology (IDTI)).
I’ll give you some bullet points on why I like them and what I’m seeing… but feel free to offer any comments or questions.
Per usual, the stocks are chosen based on their strong technical performance. Let’s get started.
Baidu (BIDU) – Weekly Chart
- I purchased BIDU myself Monday 1-2-18 and am currently long for a trade.
- After 10 weeks of pulling back from highs and carving out support around this 230 area, BIDU looks ready to continue its long-term trend to the upside.
- The first target of mine (on the daily) is this 251 area, but through there, there’s a gap to fill from October, and then the previous highs up towards 270 will quickly come in sight.
- If we start breaking down below recent multi-week lows, I would exit the trade for a loss.
Integrated Device Technology (IDTI) – Weekly Chart
- IDTI is another stock that saw a strong run up of about 40% throughout August into November of last year and has recently pulled back off highs and is starting to find support above the 20 period weekly EMA.
- It’s already up over 5% in the first 2 days of trading in 2018, and getting a strong weekly close over 31 would be a good sign that this stock wants to make its way back to prior highs around 33.
- No position, just watching, and would lose interest in the name if we started breaking below recent lows.
Yesterday, I released a new video detailing several trading setups that I like, including these two. Watch the video for more thoughts and trade ideas.
Twitter: @EvanMedeiros
The author may hold a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
