by Sam Collins | December 20, 2012 1:06 am
Yahoo (NASDAQ:YHOO) — The Internet giant broke from a cup-and-handle consolidation in October and ran from $16.75 to over $19. For those who own the stock, profit-taking should be considered since YHOO is selling at almost 20 times next year’s earnings and is more than 20% above its 200-day moving average — a clear case of overvaluation.
The MACD indicator flashed a “sell” signal in the first week of December that was confirmed Wednesday — note the declining volume, which is a clear signal of a lack of support at the current price.
For short sellers, the downside target is $17.50. Short-selling is highly speculative. Please check with your broker for special restrictions on this stock and be aware that any special dividends paid by the company may have to be paid by the short seller.
Source URL: https://investorplace.com/2012/12/trade-of-the-day-yahoo-nasdaq-yhoo-4/
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