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:
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).
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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.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach