YHOO Yahoo Weekly and Daily Charts Overbot Rising Wedges Negative Divergence

Marissa Mayer enjoys rock star status these days as Yahoo prints new highs each day. The weekly and daily charts, however, show overbot conditions, rising wedges and negative divergence. The party is over. If one of the fortunate long players, it is time to run for your life, since a negative divergence spank down is on tap. The green inverted H&S pattern on the weekly chart shows a head at 11.5, neckline at 18.5, which targets 25.5, however, note the large spike higher in May 2011 to create the neckline and large spike lower to create the head in August 2011. These extreme readings may be softened with a head at 12 and neck at 18 which targets 24, the current price.  YHOO is about to be slapped south, it is simply a question of how much; the 18.5-20.5 range is a lower target. Yahoo may squeeze out a buck more upside, especially if a happy news announcement occurs over the next couple days, but, since that is unlikely, it is far more important to worry about the 4 or 5 bucks of downside which should begin at anytime. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.