View: $YELP – YELP.com | SharePlanner

YELP: This is a realtively new stock having its IPO come out in March so there are limited support and resistance.  But after spending time in the low teens and the high twenties, YELP looks to have found a base around the 20′s.

There is support for YELP between 21.87  and 19.88, this range has acted as a basing area before YELP breaks out or down.   The 19.88 level broke in May which sent YELP to its low at 14.10.  Then YELP broke above 21.87 to rally to 27.74.  Over the last couple of days YELP sold off from its highs moving back to the middle of this range, hitting support at 20.62 yesterday which it rallied off of showing bullish signs and forming a bullish candle.

 Short-Term:  For YELP to continue its move upwards it will have to get above 22.42, support for YELP is at 21.87 below that is 21.15.  Dropping below 21.87 could push YELP lower short-term as it would be seen as a failed breakout that is where the 21.15 level comes into play.

Longer-Term:  YELP longs aren’t in any trouble unless it breaks below 19.88.  A warning to the longs would come if there is a close below 20.62.  YELP has a decent short float at 28% and only 8 million shares float, so this stock could move upwards if it gets a bid.  21.87 is the breakout level so a retest of this level is not a bad thing, but if YELP closes below this level for a few days, it could test the bottom of the range.  If YELP continues upwards its next true resistance level is all the way at 24.83 about 14% from where it is now.   There is room for this stock to run if it does catch a bid and its as if the stock hasn’t done this before.

Overall: YELP is a decent looking long that is a young and violatle stock so it can move, it has clean stops which help managed risk.

Play:  LONG Stop below 20.62 to 19.88

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