Yahoo’s Chart is Screaming ‘Sell!’

YHOO broke from its intermediate bull channel on higher-than-average volume

   
Yahoo’s Chart is Screaming ‘Sell!’

Yahoo (YHOO) — This large-cap information technology company is one of the world’s largest providers of content and services. I recommended it several times in 2013, starting in the May under $24 with a six-month target of $30. The stock ran to a high near $42 in January, but rolled over on Friday and sliced through its 50-day moving average at $38.76. 

The stock rallied more than 4% on Tuesday, but then sold off in after-hours trading on heavy volume following the company’s Q4 earnings release. Yahoo reported a 1.6% decline in revenue to $1.2 billion, which met expectations. Earnings of $0.46 per share were up 31% year over year and topped estimates of $0.38. But a 6% decline in display-ad revenue for the quarter disappointed.

YHOO broke from its intermediate bull channel on Thursday on higher-than-average volume. With falling revenue and the stock establishing an intermediate downtrend, it should be sold. The downside target is $30. 

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chart key 300x84 Yahoo's Chart is Screaming 'Sell!'


Article printed from InvestorPlace Media, http://investorplace.com/2014/01/trade-day-yahoo-yhoo-3/.

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