Yahoo was the hottest stock on Wednesday
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Yahoo! Inc. (NASDAQ:YHOO) shares surged Wednesday on reports that the giant Microsoft may be an interested buyer. Reuters reported this afternoon that Microsoft, which made an unsuccessful bid for Yahoo in 2008, may seek a partner to acquire the Sunnyvale-based Internet pioneer. Yahoo is reportedly preparing financial data for prospective buyers, which Reuters says includes Menlo Park-based Silver Lake Partners, Chinese e-commerce company Alibaba. CEO Jack Ma said just last week that he's "very interested" and Russian investment firm DST Global. From a technical standpoint, the technical indicators are supporting the bullishness. The slow stochastic has moved above the 50% level in a 'V' shaped rebound. The MACD is moving up in the positive zone and is above the signal line. The ROC is in the positive zone and the RSI is above the 50% level. Volumes on up days continue to be higher than that on down days, suggesting accumulation. In addition, for the first time since June the stock broke and closed above its 200-day moving average ( 15.59 ), and is poised to continue higher, towards the 17-18 area next. The strategy should be to "buy on dips".
Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in AC Investor Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence.
As always, good luck !
AC
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