In late 2012, Yahoo Inc. started to break out from a large multi-year base (dashed lines) and had an extremely sharp rise that culminated at a high of $41.72 (U.S.) (A).
Subsequently, the stock pulled back to just below its 40-week moving average and the long-term rising trend-line (B – dotted line). A decline below $32-$33 (shaded area) would signal further weakness, possibly to around $28. Only a sustained rise above $37-$38 would reverse the current negative trend.
A decline below $32-$33 would signal an initial Point & Figure target of $28.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.