#StockIdeas: #YHOO pullback scenarios, your safest trade

Updated December 12, 2013 ‚óŹ 1,316 views
YHOO chart daily

YHOO has been on a bull ride for the past couple of weeks. But we all know, no stocks shoots all the way up high. There will always be a pullback as you can see from the daily chart. And YHOO already had a major pullback yesterday.


YHOO Pullback Scenarios:

If you look at the daily chart: YHOO peaked right at the top of the up-trend channel 2 days ago. It also peaked at 100% Fibonacci level. 

"Technical Analysis 101, professional traders take profits at 100% level. This is why you saw a major pullback yesterday."


But How Much Further Will YHOO Pullback?

  1. It could bounce from 78.6% Fib level at $38.45 and continue to make new high!
  2. If it breaks below $38.45, it could go further down to 61.8% at $37 area. This is where 200hEMA and 50dEMA could cross in few days.


Your Safest Entry Trade:

The safest entry trade is when YHOO breaks for a new high above 100% Fib level. Above $40.25.

*Remember trade at your own risk. Always do your own research and analysis before you trade.



UPDATE 12/10: I bought JAN puts when it peaked above $40.


Also Read:

Past Trading Performance:



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David · 8 years ago
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Bearish Head and Shoulder pattern seems to have formed at today's close. Watch for another nasty pullback here.

David · 8 years ago
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