It might sound silly, desperate or maybe just insane coming from the guy that is losing the Best Stocks of 2015 Contest, but I like my pick even better now than I did in December.
Back then, I choose Yahoo! Inc. (NASDAQ:YHOO) to outperform other stocks for the duration of 2015.
YHOO stock had survived the Alibaba IPO and was on the edge of a long-term breakout. Toward the end of 2014, Yahoo shares were already starting to climb higher.
That was the one problem with the pick: There was some downside risk in the short term that YHOO stock would come back and retest the breakout area.
The chart above updates the original from late December. And, sure enough, you can see that YHOO stock has pulled back to the breakout zone, and I am in dead last in the competition.
With the top pick in the Best Stocks for 2015 contest up 84% at this point, perhaps a win at the end of 2015 is not in the cards.
Maybe if I can get them to extend the contest as the Best Stock until 2018?
In all seriousness, the technical setup for YHOO stock is still very strong. And as I stated above, the setup may even be better now after retesting the breakout zone. While it moved lower, notice that there were not sellers. The accumulation stalled, but did not reverse.
Outside of the contest rules of buy-and-hold, I would look to put a stop at about $42 on a personal position if I were to enter here. The potential is still up towards the range between the 61.8% Fibonacci level at $78.80 and the ascending triangle breakout target at $81.25.
Less than $2 of downside risk for a possible $35 move higher? Sign me up again.
As of this writing, Greg Harmon was short YHOO put options.
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