YHOO rebounded from the YTD low at 11.09 (08 Aug) to break above the 3-1/2-month falling trendline (from 09 May/08 Jul/17 Aug highs), retracing over 38.3% of the 18.84/11.09 decline. The positive momentum suggests that further corrective strength is possible towards the major resistance zone from 15.41 (26 Jan low), 15.63 (16 May low) to 15.95 (07 Jul lower high) near 61.8% retracement of the retracement (Resistance 1) where bears may reassert to form a potential swing high. A downside reversal would target 12.45 (Support 1) which, if breached, would open 11.88 (Support 2) ahead of 11.09 for a potential retest (Support 3). However, a break above the 15.41/15.95 major resistance zone would negate the bearish scenario and allow bulls to seek 16.99 next which guards the 18.84 YTD high.
Trading Indication:
Short-term (Intraday):
Sell at 15.70 or higher;
Target at 12.45 and lower; Stop Loss at 16.00 (2.0%)
Long-term: Possibly buy lower
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