For today's chart we have chosen to take a look at Yahoo! because it is currently testing a critical area of support. As you can see from the chart below, YHOO has recently broken out of a continuation pattern known as a double bottom. This breakout is likely to become very influential over the weeks ahead as it suggests that we are likely to see the price head higher. Of particular interest is how the price has retraced toward the former resistance of $39. We'd expect this broken resistance to act as support, but in the event that the price falls below $39, the pattern would be deemed to be broken and traders would disregard the signal.
We've also added another chart of Yahoo! from a different perspective that we find to be interesting. We have changed the time periods used to create the candlesticks from daily to weekly. As you can see from the second chart, an ascending triangle is identified. This longer term triangle is another bullish signal that confirms our prediction of a move higher.