BIDU came off from 73.30ish after a gap open. 72.50 offered resistance on the tape. I started a small short. BIDU came off another point. But then things got even more interesting…….
72.50 was a level that we spotted on the tape. And BIDU traded off another point from this weakness and resistance level we spotted on the tape. But BIDU came back to this important intraday resistance level of 72.50. I shorted again and this time with a little more size.
72.45 showed weakness. And then a huge offer entered our open book at 72.50. I shorted some more.
I am not a big fan of shorting in front of just a big offer. For this trade I saw weakness on the tape previously at 72.50. I saw some more weakness at 72.45. The market overall was near a resistance level from Friday at SPY 109.30ish. BIDU had more room to fill in the gap. On the long term chart 65 could be revisited. AND there was a bid offer in our open book at 72.50.
BIDU closed near 71, filling in the gap. Some on our desk were able to catch most of the move.
The above is an intraday resistance level trade. Perhaps you can make this trading pattern your own.
4 Comments on “Important Intraday Resistance Level Trade (BIDU)”
Saw that 72.50 resistance as well thkxs SMB trading call on twitter this morning. Although I think the call was to go long as I watched it bump up against 72.40 in the morning as general market was strong I decided it was showing relative weakness and shorted it.
Saw that 72.50 resistance as well thkxs SMB trading call on twitter this morning. Although I think the call was to go long as I watched it bump up against 72.40 in the morning as general market was strong I decided it was showing relative weakness and shorted it.
Bella:
I have a question regarding holding BIDU.
At 1pm it was the lasttime BIDU touched the 72.5 lvl. What followed was sideways consolidation for a long period of time, and some spike ups and what looks like higher highs.
Even though 72.5 is a solid lvl, what are the reasons for not taking off the majority of the position when the stock struggled at 72.0.
What is the optimal amount of time and space to hold bidu, it looks like the trend gets broken several times. Is this a trade that you should simply hold for a certain timeframe (eg hold until the close, either it works out or it doesn’t).
I don’t see too many reasons for holding unless you project a market selloff into the close. I’m interested in your thoughts.
Tapetrader
Bella:
I have a question regarding holding BIDU.
At 1pm it was the lasttime BIDU touched the 72.5 lvl. What followed was sideways consolidation for a long period of time, and some spike ups and what looks like higher highs.
Even though 72.5 is a solid lvl, what are the reasons for not taking off the majority of the position when the stock struggled at 72.0.
What is the optimal amount of time and space to hold bidu, it looks like the trend gets broken several times. Is this a trade that you should simply hold for a certain timeframe (eg hold until the close, either it works out or it doesn’t).
I don’t see too many reasons for holding unless you project a market selloff into the close. I’m interested in your thoughts.
Tapetrader