Should You Buy Yahoo Now? It's Setting Up A Bullish Pattern July 2016

It has been years since Marissa Mayer took over the helm at Yahoo. Despite her efforts, this stock is still struggling to keep up with its competitors and with the times. There are rumors that this company is ripe for a takeover and there are 3 companies I read that may be there to offer Yahoo a takeover offer. Anyway there is something about the charts that are telling me that this stock may be bullish.

Another way to look at this weekly chart is to imagine a cup with handle that is developing. I wonder if you can visualize it. Anyway it the cup and handle is a bullish pattern especially if it is happening in the weekly charts.

Based on what the daily and weekly charts of YHOO is telling us, there is a bullish upward bias towards this stock. Some may like to buy the breakout and put a stop below it while there are some pros who may use options called LEAPS. They are long term options that expire in a year or more. That way, if the stock rises or a takeover is announced, a superb gain with limited risk is probable.