Yahoo! Expecting Resistance Soon?

Published on Thursday, 19 August 2010 05:16 Written by Danny Miller

New York, August 19th (TradersHuddle.com) - Shares of Yahoo! Inc. (NASDAQ:YHOO) closed the trading session at $13.99 near its 50 day moving average currently set at $14.54. Yahoo's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $13.68 and calculated resistance at $14.52. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Yahoo! shares.

Traders should evaluate their trade if they want to establish a position on Yahoo! given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.