Baidu Inc. (BIDU) : Breaks Kumo Support

Baidu has a very good setup for the short with its Friday close.

On the Daily Chart, we have confirmation that the Tenkan sen has crossed the Kijun sen and the price closes below the kumo support.

Granted, Friday market is very low on volume due to the July 4 holiday.

The other thing to note is the long tail on Thursday’s candle which may suggest a reversal.

If it bounces and fail to clear $72, it will be a good time to short from there.


CRB : Be careful of the commodities

CRB is showing weakness on the charts.

2009apr-crb-commodity-research-bureau-800x600 At this moment, it has fell back into the kumo after a huge drop.

Not a good sign.

The Tenkan sen is also turning downwards. With both the price level inside a kumo and a downward Tenkan sen, we may see it pierce below 215.

Watch out for the BEARISH crossover and the support level of 215.


Commodities : Are we due for a rally yet?

The CRB is one of the key index to monitor the commodities trend.

With the recent USD weakening, we have seen that the CRB has form somewhat of a ‘cup-shape’ which suggest that there a bullish trend is in formation.

However, Ichimoku is telling us another story :

  1. The price level is currently inside the kumo which represents a trendless state.
  2. This is further supported by the flattening kumo and the horizontal kijun sen; that the ‘average’ moving range is range bound and there is no sign that trend has turned.
  3. However, we do note that there is a possibility that a cup-and-handle is forming. If it does formed, we want to see the price level break through the kumo together with the Chikou Span piercing through it.