Tuesday, January 21, 2014

Annual Trading Forecast on Yahoo! (2014)

Yahoo! stock (NASDAQ:YHOO) was bullish for the most part of 2013 and this would continue this year. The probability of a trend going further according to a dominant bias is much more than the probability of it reversing.

Right now, there is a pullback in the market and the ADX period 14 is showing the presence of bearish threats. Things have not gone completely bearish, except the RSI period 14 goes below the level 50 and the ADX DM – is vividly above its DM+ counterpart. The reversal would be confirmed further when the ADX line rises above the levels 30, 40 and 50. Without this being fulfilled, the price would keep on going upwards, possibly reaching the resistance line at 45.00 this year.

Conclusion: Interestingly, Yahoo! is a strong stock which could continue its upwards journey. You would thus survive this market (making money) by using small position sizes to, paradoxically, make more money. The less you stake the more you make. Though, when traders make money, the intensity of their happiness is less than the intensity of their sadness/anger when they lose money.  Whether the last order was positive or negative, the market would always be there for on Monday morning.

This forecast is ended with the quote below:

Over the years, I have made things very complicated and suffered from “Analysis Paralysis”. But when I finally simplified things, my trading improved tremendously.” - Markus Heitkoetter

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders

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