News broke that the Yahoo! corporate board will be meeting (news links via Fortune and the LA Times) to consider spinning off their internet business, arguably the core of their company (and what most people associate with Yahoo!).
Despite this, its stock surged with a breakout and bullish trend day, giving opportunities to traders who can completely ignore logic.
Yahoo (YHOO) shares are likely in the process of completing a trend reversal.
A positive divergence from October could set the stage for additional bullish price action.
Today’s breakout on … interesting… news did send the share price surging to a fresh new swing high.
The upside chart target for now extends to the underside of the falling 200 day SMA near $38.30 per share.
Watch the $35.50 level as your key bull/bear pivot.
A return under $35.00 opens a downside play toward $33.00 again.
Should share prices in the future break through the 200 day SMA at $38.30, it would set in motion a bullish series of trades (and price action) higher.