Lower Lows for Yahoo Inc. (NASDAQ: YHOO) Says Market Timer Frank Kollar
July 23, 2008 (FinancialWire) (By Frank Kollar)
Shares of Yahoo Inc. (NASDAQ: YHOO) closed lower for the fourth day in a row , even while the Dow Industrials rallied on Tuesday afternoon, July 22, closing with triple digit gains.
After the close, Yahoo announced that its second-quarter profit and sales fell short of analysts' estimates. The stock gained in after-hours trading so traders have greeted these earning by buying the stock.
But Yahoo’s chart does not offer much encouragement. Yahoo needs to close above resistance at $25.00 a share, some 16% above current levels, to break out of its trading range. And support at $20.00, tested successfully on July 1, is not that far below current levels. We feel Yahoo is more likely to reach support than to break out in coming weeks. But trades can be made either way if resistance, or support, are surpassed.
Currently we do not see Yahoo as an acceptable risk for any trade.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
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