Yelp Lower In Volatile Session: A Technical Look
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Yelp Inc (NYSE: YELP) shares were trading lower by $1.85 (3.8 percent) at $44.97 in Thursday's session. With no relevant news out on the issue, here is a technical examination of today's volatile price action.
After a flat open, it rallied to $47.24, which was just shy of a major resistance area. In four of its five previous trading sessions, the issue peaked in a narrow range between $47.50 and $47.59 before reversing course.
In Thursday's session, the selling momentum has accelerated and the issue has easily surpassed the the pair of lows from Tuesday's and Wednesday's session at the $46.40 level. So far, it has reached $44.78 and is attempting to reclaim the $45.00 level.
If the decline continues, there may minor support at its March 10 low ($44.25) as well as its February 10 low ($43.31).
Yelp made its all-time high in March 2014 ($101.75) and $42.10 represents its lowest level since that time.
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