Yahoo! Tests Current Resistance on Positive Earnings Report

The price on the stock was robust as the better than expected earnings lifted the stock on the open, quickly testing current resistance near the recent highs at $15.50.  A break of this level would likely test target resistance near the February highs at $16.40.  Support on the stock is seen near the 50-day moving average near $15.10 and the 200-day moving average near $14.90.  

Wednesday's price action increased momentum and created a buy signal on the MACD where the spread (the 12-day moving average minus the 26-day moving average) crossed above the 9-day moving average of the spread.  The index level moved from negative to positive which will likely lead to additional momentum for the stock price.  On a weekly basis the MACD created a buy signal at the beginning of this week.

Earlier in the week, the 20-day moving average crossed above the 50-day moving average, which is a sign that a medium term trend is currently in place.

The RSI (relative strength index) which gauges over bought and oversold levels, moved from the high thirties to the 50 level which is the mid range of the neutral zone.  Volume on Yahoo increase significantly moving above both the 50-day moving average and 100-day moving average of volume.