Baidu is a Chinese web Services Corporation based in Beijing; it operates as a searcher, an e-commerce platform with an online payment tool, develops and markets web application software, and provides human resource related services. It’s also the first Chinese company to be listed on Nasdaq-100.

The company has strong fundamentals; in terms of sales it expected to grow by 41% this year, its 24.4 P/E ratio for 2014 is a clear signal of its significant market value. Furthermore, the net margin is expected at 31.3% for this year and EPS revisions increases over the time. In addition, considering high spends during the last year for a goal to grab more than 50% of mobile search market, we can anticipate a reduction on debts for this year.

Considering the share price variations that supposes an approach to 20-days moving average followed by a break of the first resistance (USD 170.14) in order to reach the second one (USD 181.80). This scenario is anticipated thanks to the good reaction of the stock on the USD 156.7 support in daily data.

Investors could take an immediate long position at current level USD having as main purpose to profit of the hiking till the main target at USD 170. The stop loss is fixed below USD 156.