Will BIDU Produce Another 1000% Profit in Next 5 Years?

Did anyone buy BIDU near $10 in early 2009 and still holding on to shares?  Well, if you did then you know very well you have profited 1000% gain in less than 2 years.  Long-term, I have full confidence that BIDU will continue to do extremely well as it will go much higher than today’s price level.  But, how about short-term?  Can it sustain its current rate of increase?

First, I would like to look at 3 month chart below.  I have drawn a simple uptrend line.  After some consolidation in October and retracing back to this uptrend line, BIDU jumped higher into $110 level.  I have a feeling that we it may make a similar move again.  There could be some more consolidation around $110 level as a center point and once it completes retracement back to the same uptrend line, BIDU could jump higher again (that is as long as BIDU does not break this uptrend line).  What could happen if BIDU breaks its current uptrend line shown on the three month chart?

To answer this question, I would like to take a look at year to date chart below.  I have drawn the same uptrend line from 3 month chart as well as a new uptrend line extending from beginning of this year.  I would argue if BIDU was to break 3 month uptrend line, then it would fall towards this ytd uptrend line for a possible retracement (see red circle).  Whether BIDU retraces to this level or not, I am confident that this company will continue to produce great results in the long run and could possible produce another 1000% in next 5 years or so.  My plan is to constantly increase my shares as BIDU makes its retracements for long term investment.

Other Posts:
Using Downtrend Line to Trade Stock like CAGC

Importance of Support & Resistance Levels

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