YHOO has not been on my watchlist for many years. I have posted the monthly chart to show why. After reaching it's peak in 2000 ($125) it has struggled to reach its former glory.
But now we can see that a cup and handle has formed. And if price responses with a measured move then we can anticipate a substantial move up (possibly by as much as $30).
On the daily chart price broke through the September pivot high at the end of October. This was the first opportunity to buy into this stock but, despite the monthly cup and handle, more cautious traders may have wanted to wait for price to break through the $50 half-figure.
With this now achieved a pullback (or retest of $50) and subsequent breakout could offer a secondary zone at which to buy.
But now we can see that a cup and handle has formed. And if price responses with a measured move then we can anticipate a substantial move up (possibly by as much as $30).
On the daily chart price broke through the September pivot high at the end of October. This was the first opportunity to buy into this stock but, despite the monthly cup and handle, more cautious traders may have wanted to wait for price to break through the $50 half-figure.
With this now achieved a pullback (or retest of $50) and subsequent breakout could offer a secondary zone at which to buy.