• Yahoo YHOO swing trade profit taking

Yahoo (YHOO) reported earnings yesterday and the stock shot higher. 

But don’t expect much more from this point forward.

The reason why is that historically, the Yahoo (YHOO) chart has been victimized by the profit takers at every opportunity the stock soars higher. The best way to see this is by looking at the daily chart for the past year and notice how every time YHOO has pushed excessively higher through the upper-Bollinger Band it has resulted in an immediate pullback the next day. Even though there are two examples where that has not happened, nonetheless there are 8 examples where it has. 

That is an 80% chance that this stock will not work out favorably for you, if you decide to hold YHOO beyond today. 

Using technical analysis, all we have to use, is history. If we knew the future, TA would be useless, so justify it all you want, ignore the past, take the risk, maybe Yahoo will keep pushing higher, but the odds-on favorite are the bears taking a pullback here soon. 

Here’s the breakdown on the Yahoo Chart Analysis:

Yahoo YHOO swing trade profit taking 

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