Should You Buy Yahoo! Inc.(NASDAQ:YHOO)?


Dallas, Texas 04/17/2014 (FINANCIALSTRENDS) –  Yahoo! Inc.(NASDAQ:YHOO) made a gap up opening yesterday at $36.98 up 8% up over the previous day’s close. The stock ended the day at $36.35. The mood was upbeat in the street over the company’s March quarter results. The rapid up-move was backed by volumes of 61.50 million. The fact that the stock closed lower than the opening indicates some signs of consolidation due to intra-day profit booking. Volumes in the next three days will hold a key to decide if the gap-up opening is a run-away gap swinging the stock back to $40.19 (R2) and $42 (R3) levels. The intra-day trend is bullish with caution, since normally gap-up openings are followed by a small slide down initially. Intra-day call is buy for target $38.98 with stop-loss at $35.09 (S1). With RSI at 53.19 and stochastics %K at 50.93 showing upside momentum towards over-bought line. The MACD (12,26,9) has made a signal crossover yesterday, which is a bullish sign.

The weekly charts for Yahoo! Inc.(NASDAQ:YHOO) indicate a consistent upward trend starting from September 2012 and continuing with momentum. Positive earnings should sustain the upward trend with long term (3 months) target of $47.05 (R2) with further swing to $55 (R3) based on Fibonacci pivot levels with a stop loss at $24.89 (S1). The Fast stochastic %K (19.61) just reached oversold line and already showing reversal. This suggests a strong upside momentum to 80 once again.

Yahoo! Inc.(NASDAQ:YHOO) company achieved earnings of 38 cents per share and revenues of $1.09 bn in March quarter due to increase in revenues of 66% from, the Chinese online retailer, in which Yahoo has a 24% stake. The number of mobile users reached 430 million. Mobile internet application is considered to be the future growth area of the company.