It looks like $YELP is entering a channel of rapid decline again just as it did earlier this year. After getting a boost from the $OPEN buyout, investors are starting to put less emphasis on hopes of a buyout. Janet Yellen's comments earlier this week on the extended valuations of smaller cap tech stocks is definitely not helping $YELP's cause either. For a company trading at an extremely rich multiple, especially for one who is not churning profits, these are dangerous levels.
On the techs, if we break down below $66 here I believe the H&S pattern continues to take shape sending $YELP to sub 50 by late this year. MACD is also trending downwards strongly and has recently crossed into the negatives. Bearish on this name through 2014 YE.
On the techs, if we break down below $66 here I believe the H&S pattern continues to take shape sending $YELP to sub 50 by late this year. MACD is also trending downwards strongly and has recently crossed into the negatives. Bearish on this name through 2014 YE.