Another stock that's starting to move within range of triggering a major breakout trade is Yelp! (YELP - Get Report), which connects people with local businesses. Its platform features more than 22 million reviews of almost every type of local business, from restaurants, boutiques and salons to dentists, mechanics, plumbers and more. This stock has been hammered hard by the bears during the last three months, with shares off by 28%.
If you take a look at the chart for Yelp!, you'll notice that this stock has been uptrending strongly for the last month and change, with shares moving higher from a low of $16.32 a share to its intraday high of $20.77 a share. During that uptrend, shares of YELP have been consistently making higher lows and higher highs, which is bullish technical price action. That move has quickly pushed shares of YELP within range of triggering a major breakout trade.Market players should now look for long-biased trades in YELP if it manages to break out above some near-term overhead resistance levels at $20.20 to $20.60 a share and then once it clears its 200-day moving average at $22.05 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 977,430 shares. If that breakout triggers soon, then YELP will set up to re-test or possibly take out its next major overhead resistance levels at $24.51 to $26. Any high-volume move above $26 will then put $27.65 to $29 into range for shares of YELP. Traders can look to buy YELP off any weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support levels at $19 to $18 a share. One could also buy off strength once YELP clears those breakout levels with volume and then simply use a stop that sits right around its 50-day moving average of $19.57 a share.