Yahoo (YHOO) Looks to Break Out This Week

Since highlighting Yahoo (YHOO) last month, shares are flat, after trading between $32- $34 on relatively low volume the past few weeks. When drawing trend lines on their chart, we can see that Yahoo closed above the channel on Friday. A follow through on that action tomorrow could signal a potential break out and good entry point for YHOO. Should shares fail to remain above $33 tomorrow, we could see $32 again this week, and would look to enter a position there. I believe YHOO is currently undervalued by nearly 20% based on the value of their Alibaba stake, Yahoo Japan stake, and core business operations.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.