There was a very nice intraday technical setup in BIDU this morning. I like to call this a "Dummy Short" because if you aren't shorting it you are a dummy.
Big cap tech has been weak relative to the market over the past few trading days. On Friday BIDU traded down and held support at 99. This morning BIDU gapped down, retested 99 and continued to fall-- that in and of itself would have been a good trade. But that wasn't it. Consider this tweet from Steve Spence from smbcapital:
What we saw was a lot of volume come in around that 97 level. There was a buyer looking to defend that technical level with a lot of volume, but the selling pressure was too strong.
The setup comes on a retracement to 97. Most likely that level once broken will hold as a strong level of resistance on any retest. A short at those levels with a stop just above offers great risk/rewar-- and this setup was called out in the IWO Premium chatroom.
