Buy Yahoo stock

Green light for Yahoo

Green light for Yahoo

Yahoo’s share price has been in a narrow range for weeks. But this week an outbreak was forced, causing the uptrend to gain momentum. The graph now shows an upside potential of over 15%, which implies buying opportunities for trend-following investors.

I will indicate the technical landscape of Yahoo stock and explain why the risk-reward ratio is very beneficial.

Bulls in control

Yahoo’s share has been trading in a narrow range of 35.05 at the bottom as a support line and 38.00 at the top as resistance since April this year. Red and green candles alternated rapidly, but this week the bulls take matters firmly in control.

With a strong green (white) candle an outbreak is forced, causing current uptrend to significantly gain momentum. The next resistance is, after all, only at 46.17. The swing counter is at +4, the RSI is not anywhere near the overbought area, so the indicators house still show much upside potential.

As the first support level is at 35.05, the proposition offers an attractive risk-reward ratio of more than 1: 2, the upside potential is indeed twice as large as the downside risk. The outlook is positive, that is, as long as Yahoo’s stock price remains above 35.05.

Green light

With the outbreak of the trading range all indicators for Yahoo are now green. Trend following investors can therefore decide to take action on the buy side.

Keep in mind though that the day chart shows some signs of tension due to the recent breakout. A small pullback to the outbreak level at 38.00 is therefore likely. Either way, “buying the dips” is always a preferred stock price

Post Author: globaltrader24

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