Medium term
Trade view / 23 February 2016 at 10:42 GMT

UPDATE: Booking gains in Yahoo trade

Trader / TheSteadyTrader.com
United States
Instrument: YHOO:xnas
Price target:
Market price:
Background

I shared a trade view on buying shares of Yahoo (YHOO:xnas) two weeks ago as it had reached technical support levels and looked exhausted on the downside following the company's latest earnings report. The stock has since rallied nicely, and reached my first profit target on Monday, allowing me to book nice gains.

On the multi-year weekly chart we see that while shares of Yahoo have fallen significantly off their late 2014 highs, a tightening of the trading range is taking place, which some bulls may argue is at least one positive catalyst worth watching in coming months as the company may put itself up for sale or find major strategic alliances.

Yahoo Inc

Source: Saxo Bank. Create your own charts with SaxoTrader click here to learn more


On the daily chart note that the stock's up-gap and rally on February 16 moved it back above its yellow 21-day moving average and triggered my buy point. The stock then continued to lift higher in coming days and Monday's 3.76% rally pushed it to my profit target of $31.20. 

I do think the stock could continue to push higher in coming weeks and reach its next upside target just north of the $33 mark. However, prudent risk management calls for me to take most profits off the table here and for now as the trade had worked out just as planned.

Yahoo Inc
Source: eSignal

— Edited by Clare MacCarthy

Non-independent investment research disclaimer applies. Read more
3y
Kraemer Kraemer
Good call here Berger. I had been following it too, and decided on it after your call. Good profit, just that I closed it too early last week, with a 11% gain, by having it automatic with trailing stop. This is my first planned automatic profitable transaction in a long time. Thanks :D

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