Take a look at the 1-year chart of YY (Nasdaq: YY) below with my added notations:
YY has been trending consistently higher for the last 4 months while forming a clear trendline of support (red). However, the stock had also formed at 52-week high resistance at $90 (blue). At some point YY was going to have to break one of those two levels, and late last week the stock broke to a new high.
The Tale of the Tape: YY broke though its $90 resistance, which was also a new 52-week high. A long trade could be made on a pullback down to the $90 level with a stop placed below that level. A break back below $90 should lead to a fall down to the trendline support.
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