Is Yahoo Headed Towards A Selloff?
- Posted by TheArmoTrader
- on June 16th, 2014
Yahoo bulls have enjoyed a nice ~2 years. The stock has rallied from the mid-teens to a high of 41.72 set earlier this year. That’s over a 150% gain in ~15 months. However, it looks like the party might be over soon as a bearish technical pattern is setting up Yahoo for a possible selloff.
Below is a weekly chart of $YHOO. You can see, after it topped in January, the stock has made a series of lower highs as indicated by the yellow lines (at 40 first then at 37). All this while forming a slanted descending triangle pattern. If this pattern breaks, I’d expect Yahoo to give back some gains as those in the money take profits and those who got in too late panic out. The next major support area looks to be around 27.15, though I’d watch 30 for possible “psychological support”. A close below 33 would confirm this pattern.
$YHOO – Yahoo! Inc. Weekly Chart
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
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