• Chart of the Day: Yahoo! (YHOO)

    by  • September 12, 2013 1:35 pm • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 1 Comment

    Today’s chart is of Yahoo! (YHOO) which is a technology company, providing search, content, and communication tools on the Web and on mobile devices worldwide.

    Ticker:  Yahoo! (YHOO)

     

    What I Am Looking At:

     

    • Trading at multi-year highs in a steady uptrend
    • Outperforming the broader indices
    • Possible stall at current level, i.e. 50 percent year-to-date and 100 percent year-over-year levels could act as resistance
    • Round-number $30 level has been a significant level going back all the way to 1999, which could also act as resistance
    • Hitting 61.2 percent Fibonacci retracement of the 2005 peak to the 2008 trough
    • Peak call open interest for the September/October series resides at the 30-strike which could represent a major roadblock
    • RSI indicating a short-term overbought condition
    • The 10-day buy-to-open call/put ratio stands at 2.86 indicating nearly 3 times as many calls have been purchased versus puts
    • The open interest put/call ratio stands at 0.34 which ranks in the 6th percentile of all readings taken during the past year indicating a strong preference for call over puts
    • Short interest has been steadily declining since a peak in September 2011
    • Based on average daily volume it would take nearly 2 days for shorts to cover

     

     

    Conclusion:  Based on the steady uptrend, I would not look to short shares at the current level but I do see some near-term consolidation or slight pullback

     

     

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    About

    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.

    http://www.schaeffersresearch.com/

    One Response to Chart of the Day: Yahoo! (YHOO)

    1. Reverend Brian
      September 12, 2013 5:52 pm at 5:52 pm

      I have been bullish on YHOO since it traded at $16 one year ago. I Do agree that a short-term pull back may happen and that slowing of the price growth is probable. However, even if the growth, currently being 50%YTD and 100%YOY has been phenomenal for Yahoo!, a slower and more maintained growth inline with the S&P and other large cap stock price growth is still good. I believe there is still plenty of overhead room for the stock. Within one year from now, I do see YHOO attaining $40 per share. That is still a healthy profit for investors. I say this due to the fact that Yahoo! still beat out Google (GOOG) for unique visitors to their websites. Which in turn, will start to raise the revenue for advertising. Yahoo! still has a few years ahead of it to become the titan it once was but, when they get to the finish line, Yahoo! will be trading at $60 per share in my opinion.

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