Tuesday, January 27, 2015

Annual Trading Forecast on YAHOO! (2015)

Yahoo stock (NASDAG:YHOO) is a ‘buy’ for this year. The stock was bullish last year, though it consolidated during the last month of the last year. The stock traded downwards a little bit this month, but there has now been a clean upward breakout – which could signify the beginning of a long-term bullish run.

In the chart, the ADX period 14 is currently not above the level 20, meaning a lack of momentum in the market. The DM+ and the DM- do not give a clear direction (which means that one is not significantly above the other). The MACD, default parameters, has both the histogram and the signal lines below the zero line. This is a result of the recent bearish attempt in the market, but the indicators would soon factor the present price actions in.

Short trades are not advisable here. In addition, one may want to stay aside until the price goes above the resistance level at 50.50, then one can buy Yahoo! stock. Yes, momentum will eventually return to the market and it is supposed to favor the bulls.

This forecast is ended by the quote below:

“Often traders lose sight of their goals of capital preservation and long term augmentation.” – Julian Komar

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals

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