Tue 9th Sept

I have been tracking YHOO ever since it made an ascending triangle breakout above the $20 level at the end of 2012. This is a copy of a chart from my blog back in Feb 2013 when the $20 triangle breakout was getting going.

YHOO: Feb 2013: consolidating the triangle break above $20:

YHOO has moved a long way since then and recently peaked at another resistance level at $40 in December 2013. The stock has been consolidating in a Bull Flag pattern back under the $40 since then though and only broke out 3 weeks ago:

YHOO: Aug 2014: Bull Flag breakout starting: 

The chart of YHOO today shows the Bull Flag in action. Price has rallied 14% in just 3 weeks since the Bull Flag breakout.

YHOO Sept 2014: Bull Flag breakout and a break back above the $40 resistance level:

The break back above the $40 level is bullish and any hold above this level for September would be significant and suggests continuation. YHOO has history at higher levels and this gives added to support to any continuation move:

I have been selling Puts on YHOO and will continue to do so. I will happily accept the stock at $40 and would look to hold from there.