YAHOO (YHOO)

01 February 2012

YHOO:

YHOO Sitting on Support: YHOO it is currently sitting at short-term support at 15.38. This support comes from two things, first the 200 ema which is at 15.38 and price support from the last two weeks. In addition this is also the middle of the range YHOO has been in for the last couple of months.

Range Bound: YHOO has remained in a range of 14.74 and 16.40 since November 1st and an even large range from 16.73 to 13.86.

Current Price Action= Descending Triangle: After testing the top of its range in late December Yhoo has retreated back down and based around its 200 ema forming a descending triangle pattern. This pattern size is a conservative .73 (16.11-15.38)or a 4% plus drop from the base. This drop puts YHOO right back at the bottom of its short-term range- so this move is logical. This would also be a logical bouncing point for YHOO. YHOO could break out of this triangle if it is able to get above 15.67 and then above 16.00

Overall: Yahoo has chopped around with the market but is looking weak having been in short-term downtrend while the market has been rallying. It reported earnings on 1/24 and this catalyst still didn't move the stock. YHOO is bearish below 15.38 and even more bearish below 14.74. This stock is not going anywhere till it breaks either 16.73 or 14.74. Short-term before YHOO can get bullish it needs to break above 15.67 which has been resistance during the last few days last time YHOO broke this it bounced higher.

Key Stats:

Trend:
- Short-Term: Down
- Intermediate: Neutral
- Long-Term: Neutral
Low Short Float= 3%
Pattern:
- Short-Term: Descending Triangle (Bearish)
- Long-Term: Range Bound (Neutral)