Baidu's rebound encounters a technical bottleneck; the target of 130 yuan needs to first break through the 128 yuan mark.

Last Friday (April 17), the stock closed at 121.9 yuan, with a clear rise after rebounding from a low of 102.8 yuan. On that day, it regained multiple short-term moving averages, indicating a strengthening trend following the rebound in the short term.

Looking at large technology and internet sectors, the market saw a broad pullback last Friday (May 17), with Baidu down 1.14%, $TENCENT (00700.HK)$Down 1.26%,$MEITUAN-W (03690.HK)$down 2.54%, with only $BABA-W (09988.HK)$showing a slight increase. Technical signals are also bearish: Baidu, Alibaba, Tencent, and Meituan all received 'sell' signals, indicating that the sector as a whole is in a profit-taking phase following a rebound.

Notably, Baidu's stock price remains below the MA30 (114.67 yuan) and MA60 (128.04 yuan), showing weaker technical structure compared to Meituan, which has moved above the MA30, and similar to Alibaba and Tencent, both of which are under pressure from medium-term moving averages. This indicates that although Baidu has upward momentum, its upside potential is constrained by overall sector selling pressure and key resistance levels. Investors’ anticipated target of '130 yuan' will require an effective breakout above the dense resistance zone around 128 yuan (MA60) to establish a solid foundation.

Technically, Baidu’s share price on Friday (May 17) approached the upper band of the Bollinger Bands, with 122.59 yuan to 127.31 yuan being the most critical short-term resistance zone. Although the share price is significantly higher than the middle line of the Bollinger Bands at 112.26 yuan, indicating a strong rebound, the Relative Strength Index (RSI) has risen to 74.22, showing that while short-term momentum has clearly strengthened, it has entered an overheated zone. This means the risk-reward ratio for chasing the current level is beginning to decline, consistent with some investors’ perceptions that although the trend is strong, it is gradually entering a phase where consolidation and breakout capabilities need to be observed.

From investor comments, it can be seen that the market is currently divided into two camps regarding Baidu. One side believes that despite the broader market pullback, Baidu can still maintain a pattern of significant gains with minor pullbacks, representing a normal bullish structure, and some even begin to look towards higher levels. The other side is more reserved about the pace of the rally, feeling that the stock price isn't rising decisively enough and preferring to wait for a pullback to add positions incrementally. Some investors are also focusing on news developments, such as autonomous driving business and computing power concepts, reflecting that in addition to analyzing technical trends, the market is also watching whether fundamental drivers can further support the stock price.

Based on the focus of investor comments, the market's main concerns at present revolve around three key issues.

First, whether Baidu still has the strength to move higher, potentially challenging 130 yuan;

Second, if the stock price pulls back, whether this represents normal consolidation rather than a weakening trend;

Third, whether the thematic aspect can continue to support valuation recovery.

In conjunction with technical trend analysis, the most important observation level at this stage remains 115.64 yuan. If the stock price can stabilize above it and further break through 122.59 yuan, there is a short-term opportunity to test 127.31 yuan, at which point the expectation of nearing 130 yuan will have a stronger basis; however, if 115.64 yuan is breached, attention should be paid to slowing rebound momentum, and the stock price may retest the 112.26 yuan support. Overall, Baidu's current rebound has transitioned into strengthening, but it is approaching the short-term resistance zone, making it more suitable to wait for a breakout confirmation or a retest of support rather than blindly chasing in overheated areas.

Reply to some investors' views:

@34154559Market adjustment makes Baidu's pattern of sharp rises and minor pullbacks normal; investors lacking confidence can take early profits.

This view is reasonable; currently, Baidu indeed represents a strengthening after a rebound. As long as 115.64 yuan is not breached, the pattern of sharp rises and minor pullbacks can still be considered normal consolidation.

@飛龍在天27 130

The target of 130 yuan is a more advanced objective; if 122.59 yuan is first broken and then tests 127.31 yuan, the expectation will become closer thereafter.

@5536543Hurry up, domestic computing power has exploded, and you're still here waiting.

The thematic aspect indeed helps market expectations, but technically, it still depends on whether 122.59 yuan can be broken. Before that, it remains consolidation near the resistance zone.

Based on the above analysis, the strategies for deployment can be divided into the following main approaches:

$UB#BAIDURC2606B.C (54786.HK)$$MS#BAIDURP2812C.P (55955.HK)$

$MSBAIDU@EC2609A.C (27488.HK)$$BIBAIDU@EP2607A.P (20719.HK)$

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Reminder: This article does not constitute any investment advice.

This article is for reference only and does not constitute any investment advice. The market data, opinions, and analysis contained herein may change at any time without prior notice. We are not responsible for any loss or damage caused by reliance on the information in this article. Technical analysis only shows whether certain technical conditions are met; a comprehensive assessment of asset performance should be conducted using additional data. Decisions to trade should not be based solely on this article. Please note that past performance is not indicative of future results.

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