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Nearest Resistance: $29.50
Nearest Support: $27.50
Catalyst: Earnings, Alibaba Boost

>>3 Tech Stocks in Breakout Territory

Yahoo! ( YHOO) is seeing a minor correction in today's session after rocketing higher on the heels of stellar results at Alibaba Group, the Chinese e-commerce giant that Yahoo! owns a 24% stake in. While Yahoo!'s results were pretty lackluster as CEO Marissa Mayer continues to turn the chip around, Alibaba managed to triple its income for the quarter and boost sales by 71%.

Talks about bringing Alibaba public could unlock huge value for shares of YHOO. Not surprisingly, that helped spur a huge rally in Yahoo!'s shares yesterday. Technically, the breakout above $27.50 resistance was significant. While shares are correcting in this afternoon's session, the overall trend in this stock remains distinctively up.

If you're looking for a buying opportunity, I'd suggest waiting for YHOO to establish some semblance of support above $29.

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