20/06/15 – BIDU NASDAQ – The longer term Bearish trend for this stock ha pulled back up on a Wave 4 to the top of the channel and if this holds could well turn back down to form a Wave 5 Low at my projected target Level. The Wave 4 Bullish pull back has found resistance near the Fibonacci 0.5 Retracement level taken between Wave 2 and Wave 3 extremes. There may be a little more movement higher before the potential turn down but I cannot ignore the Abandoned Baby Bearish Doji formed with Friday’s bar and therefore have set up an order for a short trade if this stock does turn down next week. There is another month before the Earning announcement for BIDU Nasdaq, so there is time for a bearish move to test the lower channel. Stop SELL order @ 201.96 which is below 4 out of 5 of the major pivots during the Wave 3 that rejected a move lower (P pivot was anomaly). Stop Loss @ 212.26 with the initial take Profit Limit Order @ 177.00, giving a Risk to reward profile around 1:2.5. I may have to adjust the order if Friday’s high is broken. Charts as Below for the setup of this potential short trade on BIDU Nasdaq. (click on the chart images to enlarge, then backspace to return tot he trading journl)
23/06/15 – BIDU Nasdaq – The Wave 4 made a new high in yesterdfay’s session then rejected that price and formed a bearish engulfing pattern with the previous day’s Doji. I have adjusted the Stop Loss to 214.24 to compensate for this new high. The Entry price for this potential Short trade is still good @ 201.96, giving Risk to Reward profile over 1:2. Chart as below for the adjustment to this order on BIDU Nasdaq.
30/06/15 – BIDU Nasdaq – My Stop Sell order tip toe triggered during yesterday’s large Bearish US session. The price did gap down slightly below my initial entry point and was taken into the trade @ 199.30, which till give a Risk to Reward profile just over my minimum desired 1:1.6. Although a Doji was formed on yesterday’s bar the price did make a lower low and a lower high which in terms of returning to the overall Bearish trend is a good sign. Chart s below with the amended entry price.
08/07/15 – BIDU Nasdaq – The price for this stock made a new Wave 5 low during yesterday’s session then pulled back to close the gap from open. This price action also tested the median line of the longer term channel. At this stage I am not going to place a Trailing Stop as I need to understand where the resistance level will be for this pull back as it could potentially test the upper line of the channel. However there is a larger possibility at this time, with current market conditions, that the price will try and break through the median line and look to potentially test the lower line of the channel With this is mind I have adjusted my Take profit Limit Order to 154.48, which would give a 3% profit on my trading account balance. The real test for this theory is the price needs to open and close below the median line this week. I must also keep in mind the Greek deadline of this Sunday for new proposals may only give a Bearish momentum to the markets into the close this week. Along with the big sell off in China markets, this last couple of weeks have been testing to say the least. Charts as Below showing the reasoning behind today’s trade management decision
29/07/2015 – BIDU Nasdaq – I allowed the recent pull back within the channel as it had been a strong resistance line during the overall Bearish Trend. As expected there was a small gap after earnings on Monday which closed below my entry, then unexpectedly there was a massive gap down in yesterday’s session to my initial target zone. During the pre market it was obvious the gap was going to occur so I checked my Limit order change to 154.48 (3% profit line) was still on, to allow for higher potential profits. There may be a small pull back during today’s session that might test the previous target level which should act as resistance, so I have placed a Trailing Stop above this level, above the median channel line and a previous support/resistance level (light blue dotted line). Trailing Stop @ 176.89 which protects 1.5% profit on my trading account balance, whilst still giving room for the trade to work. Chart as below.
08/08/15 – BIDU Nasdaq – My Trailing Stop was taken out during Friday’s session, giving 1.5% profit on my trading account balance. It looks like this is another pull back against the overall Bearish trend and may form another wave 4 , so I will be keeping a close eye on this stock on both the Daily Time Frame and intra-day time frames for further Short trading opportunities. Chart s Below.