Baidu Charts: Short Trade Sets Up

One of the market's momentum leaders is Baidu(BIDU Quote). Last month the company released earnings and moved from a high of almost $440 to a low the next day of $353. That represented an almost 20% drop in one day.

True to its momentum power, however, Baidu has moved straight back up, closing last week just above $409. So, is Baidu headed back to the highs or even higher?

Like so many of the stocks we've looked at, Baidu's long-term trend is bullish but suspect. There is no other way to interpret a long-term chart.

The long-term chart also exhibits a potential double top at the $440 level. That high volume high from November 2007 has now been tested and has failed.