Yahoo! stock (NASDAQ:YHOO) was bullish for the most
part of 2013 and this would continue this year. The probability of a trend
going further according to a dominant bias is much more than the probability of
it reversing.
Right now, there is a pullback in the market and the
ADX period 14 is showing the presence of bearish threats. Things have not gone
completely bearish, except the RSI period 14 goes below the level 50 and the
ADX DM – is vividly above its DM+ counterpart. The reversal would be confirmed
further when the ADX line rises above the levels 30, 40 and 50. Without this
being fulfilled, the price would keep on going upwards, possibly reaching the
resistance line at 45.00 this year.
Conclusion: Interestingly,
Yahoo! is a strong stock which could continue its upwards journey. You would
thus survive this market (making money) by using small position sizes to,
paradoxically, make more money. The less you stake the more you make. Though, when
traders make money, the intensity of their happiness is less than the intensity
of their sadness/anger when they lose money.
Whether the last order was positive or negative, the market would always
be there for on Monday morning.
This forecast is ended with the quote below:
Over
the years, I have made things very complicated and suffered from “Analysis
Paralysis”. But when I finally simplified things, my trading improved
tremendously.” - Markus
Heitkoetter
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Eye-opening trading lessons: Lessons from Expert Traders
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