It has been some time since I did a review of Yahoo! Inc. (NASDAQ:YHOO). I'm doing one today because a new monthly Trade Triangle kicked in at $37.16 and could be indicating the end of the 4 1/2 month stalemate in this stock.
Now, I'm not saying that this stock is going to skyrocket to the moon, but I do believe that the bulls have the upper hand and this stock will move higher in the weeks ahead.
It seems like Yahoo! Inc. (NASDAQ:YHOO) has been around forever, but it was first founded by Jerry Yang and David Filo in 1994. There have been quite a few changes to the company since that time. Marissa Mayer, previously from Google, was named president and CEO of Yahoo effective on July 17, 2012.
Yahoo! Inc. (NASDAQ:YHOO) operates as a technology company worldwide. The company offers search products, including Yahoo Search, that serves as a starting point to navigate the Internet and discover information; and Yahoo Answers, which enables users to seek, discover, and share knowledge and opinions across mobile phones, tablets, and desktop.
One of the major "jewels" in the Yahoo! Empire is its 24% stake in Ali Baba. This stake, which will be reduced to a little over 16% when Ali Baba goes public this year, is likely to produce a huge chunk of cash for Yahoo!. According to some experts, Yahoo! could receive as much as $8 billion after taxes. That's the good fundamental end of the equation.
Now for the good news, the technical picture for Yahoo! Inc. (NASDAQ:YHOO) looks very good at the moment and it would appear as though this stock could easily move up to the $40 to $41 level.
As you can see on today's chart, Yahoo! broke out to the upside over a long term negative trend line. This also coincided with a monthly Trade Triangle turning green, which indicates that this stock is now in strong hands.
CHART LEGEND
1. 8-month negative trend line.
2. All three Trade Triangles are positive. Score +100.
3. Strong breakout of negative trend line and monthly Trade Triangle turns green.
4. The RSI indicator is also showing a strong trending mode with a 64.38.
With all the technical indicators in a strong trending mode and the fact that Yahoo! Inc. (NASDAQ:YHOO) has broken out of a 4 1/2 month base pattern, I see no reason why the stock should not trade higher from current levels.
If you do decide to trade in the stock of Yahoo!, please use money management stops to protect your capital in case things do not go as planned.
I have a feeling this is going to be an interesting week, so stay tuned.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
