The Case For Yahoo

• Posted by Greg Harmon
• on April 2nd, 2015

Investorplace.com asked me to join their Best Stocks of 2015 Contest at the end of last year. For the contest I choose Yahoo! I still think it is a great long term prospect and maybe even better than it was in December. I just sent them this update….

It might sound silly or desperate or insane coming from the guy that is losing the Best Stocks of 2015 Contest , but I like my pick even better now than I did in December.

Back then I choose Yahoo! ($YHOO). The stock had survived the Alibaba IPO and was on the edge of a long term break out. As I was waiting for year end to come the stock had already started higher. This was the one problem with the pick. There was some downside risk in the short term that it would come back and retest the break out area.

The chart above updates the original from late December. And sure enough you can see that the stock has pulled back to the break out zone, and I am in dead last place. With the leader up 84% at this point perhaps a win at the end of 2015 is not in the cards. But maybe if I can get them to extend the contest as the Best Stock until 2018? I can ask right?

The technical set up is still very strong. And as I stated above, maybe even better now as it has retested the breakout zone. While it moved lower notice that there were not sellers. The accumulation stalled, but did not reverse. Outside of the contest rules of buy and hold, I would look to put a stop at about 42 on a personal position if I were to enter here. The potential is still up towards the range between the 61.8% Fibonacci level at 78.80 and the ascending triangle break out target at 81.25. Less than $2 of downside risk for a possible $35 move higher? Sign me up again.

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