Refer to my original post dated Feb 6th-
http://stockmarketmasala.blogspot.com/2010/02/bidu.html
SET UP: Negative divergence on 30 min, 60 min and weekly charts. Daily RSI approaching 70. In the past, every time BIDU's daily RSI hit 70, it underwent 6-10% correction within 1-2 weeks.
STRATEGY: Mar 480/470 put spread.
ENTRY TARGET: 500 and above. The upper BB on the daily chart is at 512.80
EXIT TARGET: Feb 10th gap window and Jan 15th highs at 470-472. The 20 EMA is currently at 462 and rising. A 10% correction from current level will give us a target of 450.
38% retracement of the move from 435 to 500 will give 475 and the 50% retracement-468.
The middle BB on the daily chart is at 450.
GLTA
