Yelp Inc. operates a platform that connects people with local
businesses in the United States. Its platform covers various local
business categories, including restaurants, shopping, beauty and
fitness, arts, entertainment and events, home and local services,
health, nightlife, travel and hotel, auto, and others categories. The
company provides local advertising services, including free and paid
business listing services to businesses of various sizes, as well as
enable businesses to deliver targeted search advertising to large local
audiences through its Website and mobile app. It also offers brand
advertising services comprising advertising solutions for national
brands in the food and restaurant, automobile, financial services,
logistics, consumer goods, and health and fitness industries that want
to improve their local presence in the form of display advertisements
and brand sponsorships.
Take a look at the 1-year chart of Yelp (NYSE: YELP) with the added notations:
YELP has been on an overall decline since its September peak at $87.
And during the first 9 months of the chart, you cans see that the stock
had also created an important level of support at $50 (green). Once the
stock broke that support lower prices followed. YELP is now back up at
the $50 level, which should provide resistance for the stock.
The Tale of the Tape: YELP broke a key level of
support at $50 and has now rallied back up to it. A trader could enter a
short position at $50 with a stop placed above the level. However, if
the stock were to break back above the $50 level, a long position might
be entered instead.
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