Monday, July 27, 2015

Yandex NV (NASDAQ: YNDX)

Yandex N.V. operates an Internet search engine in Russia and internationally. The company offers search, location-based, personalized, and mobile services that enable users to find information, and communicate and connect over the Internet from desktops and mobile devices; and localized homepages for specific geographic markets. It provides Yandex.News, a news aggregation and information service; Kinopoisk.ru, a Russian language Website for movies, television programs, and celebrities; Yandex.Music, a music streaming service; Yandex.Master, a service through which users can find local professionals to do work around their homes; Auto.ru, an automobile-related Website; and other specialized search services for images, video, music, television, weather, jobs, transportation, cars, and real estate. Yandex N.V. was incorporated in 2004 and is based in Amsterdam, the Netherlands.
Take a look at the 1-year chart of Yandex (NASDAQ: YNDX) below with my added notations:
1-year chart of Yandex (NASDAQ: YNDX)
YNDX has been in a persistent downward move for the past 3 months. Over that time, the stock has formed a trend line of resistance (red). Any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its importance.
YNDX has tested its trendline 3 times, so far, and that line currently sits right around $15. Assuming the stock continues to fall, it should be on its way down to the $14 support (green).

The Tale of the Tape: YNDX is currently stuck under a down trending resistance. A break above that resistance should mean higher prices, thus a long trade could be made either then, or on a fall to the $14 support. Short traders might look to enter a trade at the resistance or on a break of $14.

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