YHOO: Yahoo Chart
PikerTrader | Apr 17, 2013 08:45AM ET
On Tuesday, Yahoo (YHOO) reported earnings which fell short of estimates. In Tuesday's after market, YHOO fell to 22.61 but regained some on Wednesday morning and is back up to 23.40. YHOO could provide a bounce point or a sell off. It is trading at its trendline and base level for last week's breakout. This puts it in a very precarious position. As it nears the trendline and horizontal supports, it provides an opportunity for a bounce but leaves little room for any move lower.
Right now, YHOO looks to be opening ever so slightly below the trendline, which is a bearish indication. But trendlines can be drawn with crayons, so don’t take this to heart. What would be very bearish for this stock is a break below 22.61. This is key support, and was supported Tuesday night. With YHOO stopping its aftermarket free fall at this level, the support there could provide a bounce level for the stock allowing it to climb back towards 23.92, if not higher. It would make sense and match the chart’s trendline, but if this level can’t hold, then YHOO goes 21.89 or 21.37.
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