Baidu May Test August Lows

3/24 - "Baidu is the search leader in China, with share estimates north of 70% in what is now the world's largest internet market. Future growth prospects for the company are bright and will get a turbo boost this year from the Summer Olympics.

In spite of the rosy future, near term trends indicate Baidu shares are likely to remain anchored in the $200 to $225 range and could breach the $200 level with another market sell off. If the $200 support level is taken out, short sellers could quickly drive the shares down to near the August 16th low of $161...Should a sub $165 price level be reached prior to the company's Q1 earnings release, it will represent a good buying opportunity as at this level...From these levels, I anticipate the shares will climb back to the $240 to $250 range prior to the start of the Summer Olympics."