YHOO – Yahoo!, Inc. – Shares of the world's largest global online network of integrated services reached again main bearish resistance line at $15.30 and are now preparing for the breakthrough. From January 06 peak at $43.60 a Long Tail Down pattern decisively penetrated the major support line at $35.00 switching the trend nature to bearish. The sharp decline continued with more Long Tail Down patterns interrupted by corrective up moves reaching $22.70 in October 06. Since then prices started trading in a sort of undermining sideways movement defined by a solid resistance at $34.10 and a weakening base. A pattern of lower lows at $22.70, $22.20 and $18.60 opened wide to a new wave of downtrend. The key signals that cleared the way to the final sell off were the breach of the major bullish support line at $23.60 followed by the double bottom breakout at $22.90. The Lowest level was reached in November 08 at $9.00 where a Low Pole pattern signaled that a turning point was developing. Prices recovered regaining quickly some ground to $13.50 before reversing back and finding a strong support at the double bottom at $10.90 where the uptrend resumed. Lately we have seen prices approaching twice the bearish resistance line at $15.30 and pulling back to $13.60 at first try. A new failed attempt to penetrate resistance line would most likely trigger a significant correction of the latest uptrend which might find support at $10.90. The weight of the evidence is still on bearish side although something is changing. Lighten at double bottom breakout at $13.90 and close all long positions at triple bottom breakout at $13.50 with possible contraction to $12.00 at first and then to $10.90. On the upside open new longs only at penetration of the major bearish resistance line now crossing at $15.40 with short term target set at $16.30 and in the medium term at $19.50.
BRCM – Broadcom Corporation – The major technology innovator and global leader in semiconductors for wired and wireless communications has seen its shares recovering from the sharp pull back to the major support line at $19.25 and are now taking a breath before the next up move. The March 06 High Pole pattern at $50.00 signaled the turning point after a 12 months ride. Prices traded sideways for a while indicating distribution was in place until the major bullish support line was breached at $40.75 confirming the trend reversal. Previous support level at $42.00 turned into a strong resistance developing a triple top pattern which left no reason to stay long. The decline rolled out with a series of piercing down moves until support was found at $22.00. The uptrend resumed penetrating the main bearish resistance line at $31.00 switching back to bullish mode and reaching $37.50 before entering into a sideways range with base at $29.25. A powerful up thrust break through resistance at $37.75 opening to higher prices until the double top at $43.00 reversed the trend once again. The downtrend resumed with a Long Tail Down pattern that back in October 07 projected a downside target at $13.00, a level reached with amazing accuracy 1 year later. A pattern of lower highs and lower lows interrupted by a corrective up move to $29.75 reached the lows at $13.00 in October 08. After 6 months of accumulation prices penetrated the major bearish resistance line at $17.25 changing the nature of the trend to bullish. The movement gained quickly some ground reaching $23.25 where a double top triggered a pull back to the major support line at $19.25 a level that worked as resistance during previous recovery. A swift reaction developed into a Low Pole pattern projecting an upside target set at $35.75. A negative short term Relative Strength suggest Broadcom may underperform the market in the near future but still remaining positive for the long run. Open new longs at double top breakout at $25.00 with target at $35.75. On the downside close all longs at penetration of the main bullish support line now crossing at $20.50 with possible contraction to $15.50.
UPL – Ultra Petroleum Corp – The independent exploration and production company's Point & Figure chart shows prices raising above main bearish resistance line at $46.50 switching the trend from bearish to bullish mode. June 08 top at $102.50 was quickly reversed by a swift down move that developing into a High Pole pattern projected a downside target at $33.50, a level reached in November 08. The same movement break through the main bullish support line at $85.00 leaving no reason to stay long. The sharp decline paused in the $70.00 area where prices clustered for a while before resuming the downtrend. The contraction finally reached a strong base in December 08 at $31.00 where accumulation took over. Lately prices penetrated $43.50 resistance line before breaching the main bearish resistance line at $46.50 and turning the overall outlook to bullish. Stay long with targets set at $54.00 and $62.00. On the downside lighten at double bottom breakout at $45.00 and close all long positions at penetration of the main bullish support line now crossing at $40.50 with possible contraction to $31.00.