Yahoo! Is Moving Above Resistance

Published on Thursday, 21 June 2012 05:56 Written by TradersHuddle Wire

New York, June 21st (TradersHuddle.com) - Shares of Yahoo! Inc. (NASDAQ:YHOO) closed the session at $15.74 just above calculated resistance at $15.73. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.

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.

The stock was trading in a well defined range with support at $14.85 and resistance at $15.73. Given that this range was broken, traders will be closely monitoring Yahoo's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Yahoo! is still near the broken resistance level, traders will be focusing on the $15.73 level to see if the stock holds the breakout without rolling over.