Yahoo's shares jumped on the open, testing resistance at $15.8, but were unable to break out to the upside. A close above $15.8 would likely lead to a test of $16.4 which were the highs seen in December and February. Support on the stock is seen near the 50-day moving average at $15.20 and then the 200-day moving average near $15.00. The stock has traded in a relatively tight range between $14.50 and $15.80 for the past three months.
The RSI (relative strength index) reflects a market that has a consolidative tone. The current 53 print is slightly above the middle point of the neutral range. The Bollinger bands (using a 20-day moving average and 2-standard deviations) are pointing inward, after recently testing the higher end of the current range. This also reflects a consolidative tone as resistance near $15.80 coincides with the upper Bollinger band.
Momentum has been sapped from price action. The MACD (moving average convergence divergence index) is hovering around the zero line. The MACD created a sell signal in early May where the spread (12-day moving average minus the 26-day moving average) crossed below the 9-day moving average of the spread. Volume on the stock has been slowly increasing during the first two weeks of May, and is now above the 50-day moving average of volume.
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