YHOO
The hit last night after earnings sets YHOO up for a visit to around $15.00, the daily/weekly SHS projected target. A huge gap down on volume should not be ignored. The bollinger band action today is EXTREMELY bearish and long is wrong at this time as far as short-term bias. There is a weekly broadening pattern with breakdown today that actually targets around $10.00, which is solid price support. It’s a no-brainer short, and even longs are panicked about the recent turn of events. Money is fleeing this stock, and if ever there was a time not to be long, this is it. The Bloomberg interview with the CFO, Susan Decker, didn’t do much to offset the momentum either. She’s upbeat about meeting their own goals, their user growth and financial growth, and dismisses today’s action as clearly caused by the fact that market expectation was too high. I’ll tell you what does seem to be clear; the Street is punishing the delay announcement for the release of the new advertising software. Decker said they want to leave no stone unturned regarding coding and testing. Perhaps she’d be better off leaving no stone unturned regarding effective time management and workflow. Of course this kind of delay is gonna provide selling impetus. Their lag in release has just provided the reason for the bearish patterns to play out.
28.00 was the Fuzzy C resistance from the impulsive selling last night, and that short area provided a move of about 9% profit for overnight shorts who took advantage of that resistance. The 2-day data shows it’s done a 5th completion on a 10-min chart, and it’s doing the c corrective up as I type. If/when that ‘c’ is confirmed (by new 10-min lower low) this will present a decent reward/risk parameter swing short. Targeting 10.00 or +61% using the broadening pattern on the weekly, and seeking r/r value of 10 allows for 6.1% risk stop, likely to be around $27.60, which happens to be above early morning price resistance of $27.50. So price is in the short zone at current levels for that plan.
A second short plan is to targeting $15.00 SHS projection, or +42%, and for a good r/r of 10 one can only allow 4.2% risk stop if shorting this current “c” corrective to $25.90 on an anticipatory basis (prior to confirmation).
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