- Pattern bears resemblance to a bullish flag, with more or less supporting trends in volume (far from perfect)
- MACD is close to buy signal, RSI didn't really fall below 50 (mildly supportive)
- Break out from flag should happen with substantially higher volume (not like today), so no real confirmation here yet
- Should (and only if) the confirmation arrive pattern hints at target levels well above 60, stopping slightly below 50D SMA gives satisfying risk/reward ratio, even when not taking into account the whole length of the 'flagpole'
- Nevertheless that's hard to truly believe in, unless AOL merger and Alibaba+Yahoo Japan spin-off rumors prove to be true or BABA completes its very similar flag(ish) pattern (that ruined my short attempt) pulling YHOO along (question is then why not long BABA?)
- MACD is close to buy signal, RSI didn't really fall below 50 (mildly supportive)
- Break out from flag should happen with substantially higher volume (not like today), so no real confirmation here yet
- Should (and only if) the confirmation arrive pattern hints at target levels well above 60, stopping slightly below 50D SMA gives satisfying risk/reward ratio, even when not taking into account the whole length of the 'flagpole'
- Nevertheless that's hard to truly believe in, unless AOL merger and Alibaba+Yahoo Japan spin-off rumors prove to be true or BABA completes its very similar flag(ish) pattern (that ruined my short attempt) pulling YHOO along (question is then why not long BABA?)
