Yahoo’s Run Almost Over


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Yahoo Inc. (NASDAQ: YHOO ) - This large-cap information technology giant had been trading within a very narrow bear channel since early 2009.

Then, in early April, YHOO broke from a channel downtrend in a very convincing run, jumping from $16.50 to $18.50 in less than two weeks. But that turned out to be a false breakout, which was confirmed by a death cross in June, when it became clear that YHOO had resumed its downward bias.

The stochastic flashed a buy signal in late August at $13, followed by a Collins-Bollinger Reversal (CBR) buy from our internal indicator.

But the advance was checked Friday, as the stock reversed and fell under the 50-day moving average .

Traders should resume their bearish strategies on YHOO. The downside objective is $11.

YHOO Stock Chart Chart Key

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: CBR , YHOO

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