Yelp (NYSE:YELP) is the go-to app for reviews on restaurants, shopping, local services and the like.
Earlier this year in March, Yelp was trading over $100 a share and looked on its way to the moon. However, just the reverse happened and Yelp lost half its value by early June. Since that time, the stock has recovered and traded as high as $80 in early July.
There are several reasons why I like this stock right now and they're all technical. I have no inside knowledge of what is going on inside Yelp, but I can say that the technicals are looking very positive for the stock. Today, the weekly Trade Triangle kicked in, indicating that the intermediate trend is now inline with the longer term uptrend.
1. All of the Trade Triangles are positive and displaying a +100 Chart Analysis Score.
2. There is a monthly Trade Triangle in place.
3. Pivot Point - measures the move to $85 a share.
4. Weekly Trade Triangle kicked in today at $76.49.
5. The RSI indicator is trending to the upside and is over 50.
6. The MACD indicator has recently turned up.
Just remember, there are no guarantees in trading, even with all the positive indicators. I'm looking for Yelp, Inc. (NYSE:YELP) to trade back to the $85 level in the near-term. As always, please remember to use money management and stops that work for your own trading strategy.
Good luck and every success trading in Yelp shares,
2 thoughts on “Is It Time To Buy Yelp, Inc. (NYSE:YELP)?”
Totally agree that the chart on this stock looks terrific for the short term. But the fundamentals are atrocious. No company with their pitiful earnings and weak margins should be trading at even half this stock's current market cap. This is one of those momo plays that looks like it will work out in the short term, but be ready to grab your profits because YELP is probably a great short once the current rally fizzles out.
A restaurant I used to frequent was contacted by Yelp to pay something like $300 per month to stop hiding the good reviews. When they refused suddenly a new very bad review was posted. I posted a good review but to get to it one would have to go to the bottom and click on faded letters saying something like "6 other reviews that are not recommended" When one clicks on that they get a crooked letter quiz to pass. The hardest one I ever did to see my good review and 5 others.
I think they operate about the way a protection racket does.
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