Baidu receives 'Buy' rating, short-term structure shows strength, with 126.8 yuan as key resistance

On Friday (24th), the stock closed at 121.400 yuan, maintaining its position above the 10-day and 20-day moving averages in the short term. The structure has improved compared to before, and market sentiment is clearly leaning positive. Many investors in the comments are focusing on AI, large models, and cloud business development, believing that these themes could become core factors driving the stock price higher, with an overall optimistic atmosphere.

According to technical analysis data from last Friday, Baidu Group's Relative Strength Index (RSI) was 53, which is at a neutral level, and the technical signal is'Buy'。

Among major Chinese internet technology stocks on Friday, $BABA-W (09988.HK)$ closed at 131.8 yuan, up 1.07%, with its technical indicator summary signaling 'Buy'. $TENCENT (00700.HK)$ closed at 493.4 yuan, down slightly by 0.36%, with a technical signal also showing 'Buy'. $MEITUAN-W (03690.HK)$ closed at 82.45 yuan, falling by 0.78%, with the technical signal again indicating 'Buy'. $NTES-S (09999.HK)$ closed at 170.9 yuan, dropping by 0.87%, with the technical signal also displaying 'Buy'.

Overall, it can be seen that most of the major Chinese large internet companies received 'Buy' signals on their technical indicators last Friday, suggesting that after prior adjustments, their technical indicators are considered by models to have recovery potential. However, since most individual stocks (such as Baidu, Meituan, and NetEase) are still trading below their 60-day moving average (MA60), this indicates that although there are technical bullish signals for the sector as a whole, the repair or confirmation of long-term trends will still take time.

However, there are divergences in the market. On one hand, some investors believe that the stock price remains strong, even predicting medium- to long-term upside potential. On the other hand, there are voices pointing out that every time they want to add positions, the stock price has already risen, reflecting the difficulty of entering at the current price, and some investors are concerned about whether there may be lower levels to redeploy. Overall, sentiment leans positive but hesitation due to 'fear of heights' is beginning to emerge.

Common questions focus on three aspects:

First, whether the current price is still suitable for adding positions;

Second, whether AI and large models will become a catalyst for a new round of upward movement;

Third, whether there is still an opportunity to retreat to a lower level before redeploying.

Some investors are also paying attention to the competitiveness of the company's products and market usage, reflecting a gap between fundamental expectations and actual market sentiment.

Technically, Baidu's closing price last Friday was still above the 10-day line at 118.860 yuan and the 20-day line at 113.895 yuan, with the structure not weakening, but at the same time below the 5-day line at 122.080 yuan, indicating that the short-term upward momentum has slowed. The immediate resistance level is 122.080 yuan,Further resistance lies near 126.816 yuan at the upper Bollinger Band.

The short-term key remains at the 118.860 yuan watershed. If it can break back above 122.080 yuan, then there would be conditions to test 126.816 yuan again, extending the rebound structure; however, if it falls below 118.860 yuan, one should watch for a retest of 113.895 yuan, and the trend may shift into consolidation. At this stage, it’s consolidating on the stronger side, but chasing in offers a less attractive risk-reward ratio.

Reply to some investors' views:

@泽图投资 AI and cloud businesses do support fundamentals, but technically, it still needs to surpass 122.080 yuan to confirm a more evident upward trend.

@隨時搶反彈 Progress in large models is a catalytic factor, but the stock price still needs to break through 122.080 yuan to confirm.

@龙鹫 The theme supports sentiment, but in the short term, attention should still focus on resistances at 122.080 yuan and 126.816 yuan.

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

Key deployment: A re-break above 122.080 yuan may signal a continuation of the rebound, targeting 126.816 yuan; if it falls below 118.860 yuan, be mindful of a short-term retest of 113.895 yuan.

Strategy One | Rebound above 122.080 yuan

$UBBAIDU@EC2609A.C (28166.HK)$ | Strike price 140.00 yuan | Actual leverage 5.1x | The strike price is not too far, suitable for capturing continued rebound after breaking through short-term resistance.

$BIBAIDU@EC2606B.C (20464.HK)$ | Strike price 132.98 yuan | Actual leverage 8.2x | Closer to the next upward target zone, with higher flexibility, suitable for stronger short-term rebounds.

$HSBAIDU@EC2607A.C (20356.HK)$ | Strike price 132.88 yuan | Actual leverage 7.7x | Also close to the rebound target, suitable for those optimistic about testing 126.816 yuan but not seeking maximum leverage.

Strategy Two | Breakout above 126.816 yuan for momentum

$UBBAIDU@EC2606B.C (26832.HK)$ | Strike price 145.98 yuan | Actual leverage 8.7x | Higher leverage, suitable for pursuing greater flexibility after confirmation of a breakout.

$MSBAIDU@EC2606B.C (26830.HK)$ | Strike price 145.98 yuan | Actual leverage 8.7x | Suitable for chasing momentum in the short term after a breakout, capturing extended strength.

$UBBAIDU@EC2610A.C (27686.HK)$ | Strike price 151.21 yuan | Actual leverage 4.9x | Higher strike price with milder leverage, suitable for expecting an upward continuation after a breakout.

Strategy Three | Weakening below 118.860 yuan

$UBBAIDU@EP2607A.P (20739.HK)$ | Strike price 113.78 yuan | Actual leverage 5.2 times | The strike price is close to the lower support zone, suitable for capturing a pullback after breaking through the watershed

$BPBAIDU@EP2607A.P (20780.HK)$ | Strike price 115.00 yuan | Actual leverage 6.2 times | Closer to the current price below, suitable for more aggressive deployment after confirming short-term weakness

$CTBAIDU@EP2606A.P (21132.HK)$ | Strike price 115.08 yuan | Actual leverage 6.6 times | Higher leverage, suitable for amplifying declines when bearish testing 113.895 yuan

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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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