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Tuesday, June 12, 2012

YELP - Strong Overhead Resistance

After a 44% move over the last week or so, YELP has a strong resistance area to deal with at the circled area which is a confluence of resistance comprised of:
  1. The light blue horizontal trend line, representing the 1.8 million shares of overhead supply set on May 3 at 20.30.
  2. The dotted red line, representing the upper trend line of the descending channel extrapolated from the solid red lower channel line.
  3. The olive line, representing the 50 day EMA at 20.01.
Support is the cyan horizontal line at 17.80.  Given the strong momentum, I suspect it would break out after a few sessions of consolidation.

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