3 Huge Stocks on Traders' Radars
Nearest Resistance: $37
Nearest Support: $33
Catalyst: Analyst Upgrade
Yahoo! (YHOO - Get Report) is getting some upside action of its own today, boosted by an analyst upgrade from Piper Jaffray. Piper upgraded the web giant to overweight, hiking their price target on shares from $37 to $43. One of the biggest catalysts for the rating change was the argument that the firm's large stake in Alibaba is undervalued. While today's 2.2% pop is bullish, the longer-term technical picture looks less rosy.
Yahoo! is currently forming a long-term descending triangle, a setup that's formed by downtrending resistance above shares and horizontal support to the downside. Basically, as Yahoo! bounces in between those two technically significant price levels, it's getting squeezed closer to a breakdown below $33. When that happens, YHOO becomes a high-probability sell.