YELP is facing strong resistance ahead of its earnings.
The Stock's price is below 35-36$, which is a strong weekly Zone that includes the weekly downtrend line and 3 weekly MA lines (including the 200 weeks MA line).
The scenarios:
- Bearish:
If YELP will remain below the current Resistance Zone (probably will gap lower), it can slide all the way down to complete a bullish harmonic pattern (Gartley), near 22$ - Remember this is a weekly chart so it can take weeks/months
- Bullish:
If YELP will have positive earnings that will boost its price above the 200 weeks MA line (and stay above), a potential scenario is that it will climb to complete a bearish Bat near 50$ - Again, this can take weeks/months.
It looks like the earnings will generate a strong move anyway - So, for you options traders...
The Stock's price is below 35-36$, which is a strong weekly Zone that includes the weekly downtrend line and 3 weekly MA lines (including the 200 weeks MA line).
The scenarios:
- Bearish:
If YELP will remain below the current Resistance Zone (probably will gap lower), it can slide all the way down to complete a bullish harmonic pattern (Gartley), near 22$ - Remember this is a weekly chart so it can take weeks/months
- Bullish:
If YELP will have positive earnings that will boost its price above the 200 weeks MA line (and stay above), a potential scenario is that it will climb to complete a bearish Bat near 50$ - Again, this can take weeks/months.
It looks like the earnings will generate a strong move anyway - So, for you options traders...