Yahoo has been going up since September of last year!
I used the weekly to find long-term support so I don't get stopped out. Currently, this turned out to be around 31, but the 25 EMA on the weekly is also a good long-term support line.
34.60 is the short-term resistance line. Once this consolidation is over, I would expect a breakout over this line.
I used the RSI to find good entry points and the 8 day and 40 line seemed to be very accurate for this situation. If it hit the 40 it bounced back up and continued the long-term trend.
On the chart itself there was a hammer on 10/9 with a low of 31.79. This has been holding well as a support.
Since YHOO has been rising since last September, the RSI is below 40, and the hammer support is holding, I am rating this a long-term BUY!!!
HAPPY TRADING!
Comments
octradr
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I know I said long-term but 4% in a few hours is too hard to pass up. Will re-buy when it retraces. 10/29
Superstar2317
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I used $32 as support as it kept bouncing and my order didn't fill in the upper $31's but excellent call on $31.70 as it hit $31.71, I believe!
octradr
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Thanks. But one thing to note is that all of my numbers are on closing price, not intraday spikes.
Superstar2317
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Understood but it bounced off of $32, 3 or 4 times in the past few weeks so looked like solid support. I cashed out those $32's for 120% gain on the upgrade which was near my target of $34 so I'm happy and you did a solid chart so win-win:)
octradr
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Nice job. It looks like you like buy and hold so check out my charts on BP. There is a weekly and a daily chart.
invest4fam
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Yes I agree long term might go back up to long term resistance;)
invest4fam
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Yes I agree long term might go back up to long term resistance;)