Yahoo (YHOO) Gaps Up, Out of Falling Wedge

Yesterday we highlighted a chart of Yahoo (YHOO), showing a close on Friday just above the falling wedge pattern they have been trading within the past month. I was looking for a confirmation of that break out today and Yahoo followed through, gapping up on the open and finishing the day well above Friday’s close. Looking at the chart now, YHOO faces slight resistance at $34 and has a good deal of upside from a technical perspective once taking out that barrier. Another strong day tomorrow will take shares of YHOO above $34 and on their way to our $38 target price.

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.