YHOO has not been on my watchlist for many years. I have posted the monthly chart to show why. After reaching it's peak in 2000 ($125) it has struggled to reach its former glory.
But now we can see that a cup and handle has formed. And if price responses with a measured move then we can anticipate a substantial move up (possibly by as much as $30).
On the daily chart price broke through the September pivot high at the end of October. This was the first opportunity to buy into this stock but, despite the monthly cup and handle, more cautious traders may have wanted to wait for price to break through the $50 half-figure.
With this now achieved a pullback (or retest of $50) and subsequent breakout could offer a secondary zone at which to buy.
Based on it's action through this week, there seems to be a new resistance point at just above $52. Analysts continue to preach about YHOO's eventual tax announcement with regards to their stake in BABA, would a February call be an interesting play (SP of $60-65?)
iAnneTrader
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Hi John
I tend to trade longer-term so at the moment the $52.62 high isn't of concern to me - it could just be a small pullback. The trend is still intact, so far, with $50 offering support.
Also, I trade purely technicals. Fundamentals does interest me but not on a "need to know" basis! I don't predict future price - I just trade the trends until I get stopped out.
I will watch and see what happens, though, to Feb call.