NEW YORK ( TheStreet) -- For the most part, there is a dearth of opportunity on the long side of trading right now. After the August devastation, the well has gone dry. There are, however, a few stocks that are holding well like McDonalds (MCD), Apple (AAPL), Pricesmart (PSMT), etc.
These are stocks with nice balance sheets and income statements, whose management continues to perform in a difficult period. Then there are stocks whose management has basically failed to deliver and who are rumored for takeovers. Yahoo! (YHOO) fits that bill. See the daily chart below.
This is not a stock chart that I would choose to invest in, but for a trader, it is definitely one that can be traded. Even after the big price jump yesterday, support is nearby while resistance looms at two zones up above.
The reward -to-risk is favorable and if you can purchase at or in the support zone, you don't have to risk a lot on the trade.I would place my stop below yesterday's lows and shoot for the higher of the two resistance zones. As long as rumors float, this stock could levitate as well and a push to $14 is quite achievable. Until next time, just keep trading the charts.
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