Yahoo stock (NASDAG:YHOO) is a ‘buy’ for this year.
The stock was bullish last year, though it consolidated during the last month
of the last year. The stock traded downwards a little bit this month, but there
has now been a clean upward breakout – which could signify the beginning of a
long-term bullish run.
In the chart, the ADX period 14 is currently not
above the level 20, meaning a lack of momentum in the market. The DM+ and the
DM- do not give a clear direction (which means that one is not significantly
above the other). The MACD, default parameters, has both the histogram and the
signal lines below the zero line. This is a result of the recent bearish attempt
in the market, but the indicators would soon factor the present price actions
in.
Short trades are not advisable here. In addition,
one may want to stay aside until the price goes above the resistance level at
50.50, then one can buy Yahoo! stock. Yes, momentum will eventually return to
the market and it is supposed to favor the bulls.
This forecast is ended by the quote below:
“Often
traders lose sight of their goals of capital preservation and long term
augmentation.” – Julian
Komar
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Learn from the Generals of the Markets: Market Generals
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