Yahoo! near Resistance

Published on Wednesday, 18 August 2010 05:32 Written by Christian Paolinetti

New York, August 18th (TradersHuddle.com) - Shares of Yahoo! Inc. (NASDAQ:YHOO) are trading very close to calculated resistance at $14.52 with the current price action closing at just $13.94 placing the stock near levels that make it difficult to buy.

Yahoo! Inc. 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.

Yahoo's current stock range is defined by current calculated support defined at $13.68 and by the resistance level at $14.52, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Yahoo! , as the stock is well above support, however, as the stock pulls back towards $13.68 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $14.52 then traders will get an opportunity to enter Yahoo! stock by establishing a position as the stock moves to a higher range.