YELP back at $50

YELP has been on an overall decline since its September peak at $87.

And during the first 9 months of the chart, you cans see that the stock had also created an important level of support at $50 (green). Once the stock broke that support lower prices followed. YELP is now back up at the $50 level, which should provide resistance for the stock.

The Tale of the Tape: 

YELP broke a key level of support at $50 and has now rallied back up to it. A trader could enter a short position at $50 with a stop placed above the level. However, if the stock were to break back above the $50 level, a long position might be entered instead.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

The Biotech Trader