Baidu Jumps 12% – Analyzing the Chart & Using DLCs for Short-Term Trades

Binni Ong
03-18

$Baidu(BIDU)$ $BIDU-SW(09888)$ stock surged on March 17, 2025, following the announcement of its latest artificial intelligence (AI) models, ERNIE 4.5 and ERNIE X1. The company claimed that ERNIE 4.5 outperforms OpenAI's GPT-4.5, while ERNIE X1 provides deep-thinking reasoning capabilities at a lower cost than its competitors. This major AI development boosted investor sentiment, driving Baidu's shares significantly higher.

Technical Analysis on Baidu

1. Volume

  • Significant spike in trading volume, much higher than previous sessions.

  • Indicates strong participation and investor confidence.

2. Moving Averages

  • Price has moved above short-term moving averages (green and red bands).

  • Moving averages are turning upwards, signaling a potential trend shift.

3. Resistance Levels

  • HKD 99.80: Previous resistance level that the stock has broken above.

  • HKD 113.80: Next major resistance where selling pressure may appear.

4. Current Price Movement

  • Trading at HKD 103.40, up +12.33% at the time of posting.

  • Breakout above resistance with strong volume suggests bullish momentum.

Short-term trading using DLCs

DLCs (Daily Leverage Certificates) offer a leveraged way to trade Baidu’s short-term price movements.

Key Considerations for DLC Trading

  • Leverage Effect: DLCs amplify both gains and losses, making risk management important.

  • Time Decay: DLCs reset daily, so they are more suited for short-term trading.

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For more information about DLCs, visit https://dlc.socgen.com/en/education/handbook 

Disclaimer: 

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. 

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.

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Comments

  • JessieTheresa
    03-18
    JessieTheresa
    Baidu's AI advancements are exciting
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