Oohay!
Oohay is Yahoo spelled backwards. I suspect that not
a few of those who’ve been betting on the long-term business prospects of the venerable
old Net portal are screaming something to that effect.
Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating) took a dive and closed well below its six-month trading
range, and worse yet, a long-term trendline that has been in place for over a
year. The attached weekly chart displays the carnage.
It’s a good idea to take breakdowns of long-term technicals
seriously. A similar set of circumstances converged on Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating) in
early-April, and the stock plunged from 90 to 30 shortly thereafter. Since then,
MSFT has traded in a range near 50% level of its Dec. highs. Could the same
debacle be in store for YHOO? A smart trader will assume nothing of the sort.
But if he’s short, he’ll be looking for key resistance levels to which to move
his trailing buy-stop.
Tomorrow,