It failed few days ago, but now it has actually broken out. The pullback from the previous breakout was a shakeout - we only know this after the shakeout has happened.
Initially, when I saw the gap down on YELP, I thought this stock looked good to short for a near-term gain. I usually concentrate on the weekly and daily timeframes and, with the gap down breaking through previous support, the $50 half figure and with higher volume, this looked like a great shorting opportunity - as there appeared to be no further support for some...
If YELP opens below 49.16 (expected to open at 48.19) will be a nice Retest Gap. To learn to trade this strategy for free go to www.RealLifeTrading.com
I’d buy Yelp shares at $58 with a ten dollar stop loss. Profit target could be set at either $85 or close to all-time high ($100). Question is whether we are patient enough to hold this position for months to come.
Full analysis: jmak.ws
For sure a double bottom, and a developing triple bottom may be in place, and while the flat tops were not taken out with any conviction they were taken out. Psychologically there's a lot of shorts out there.
The next main weekly support level to watch for the Yelp. Watch for a breakout or a rebound .
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