Trading Idea: Is Yahoo! close to Support?

Published on Friday, 25 May 2012 06:12 Written by TradersHuddle Wire

New York, May 25th (TradersHuddle.com) - Shares of Yahoo! Inc. (NASDAQ:YHOO) are trading very close to calculated support at $14.85 with price action closing at just $15.35 and placing the stock near levels where traders will start paying attention.

Yahoo's stock range is defined by its calculated support defined at $14.85 and by the resistance level at $16.00, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to Yahoo's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $16.00 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

Yahoo! Inc. (NASDAQ:YHOO) is a global Internet media company that offers Internet services to users, advertisers, publishers, and developers worldwide. The company owns and operates online properties and services and provides its advertising offerings and access to Internet users through its distribution network of third-party entities, as well as offers marketing services to advertisers and publishers. Yahoo owns the second largest internet search engine and provides email services to its users.