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Baidu Inc. (BIDU) Recently Broke Out Above the 200-Day Moving Average
Baidu Inc. (BIDU - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, BIDU crossed above the 200-day moving average, suggesting a long-term bullish trend.
The 200-day simple moving average is widely-used by traders and analysts, and helps establish market trends for stocks, commodities, indexes, and other financial instruments over the long term. The indicator moves higher or lower together with longer-term price moves, serving as a support or resistance level.
BIDU has rallied 9.1% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests BIDU could be on the verge of another move higher.
The bullish case solidifies once investors consider BIDU's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, while the consensus estimate has increased too.
Investors may want to watch BIDU for more gains in the near future given the company's key technical level and positive earnings estimate revisions.