YOKU update 5/25/2015: is the bottom in!? A 100% gain in 2 moths surely suggests that.

YOKU has skyrocket over 100% over the last 2 months, adding 31% this week only, on huge volume. WOWSERS is all I can say. But what do the chart say? Let’s take a look at the monthly chart first. We have a nice top in early 20111, then an clear a-b-c down to this year’s price low. Given how price has skyrocketed since, it’s logical to assume the low is in; here labeled as “Primary B”. Based on the monthly candles one can more easily draw longer term support and resistance levels, which I’ve done here. These are all +/- $0.50 (cont’d below chart)

YOKU monthly 05242015

It follows that price has punched through the first two S/R levels ($13.80 and $26.25). Next up are the $32.50 and $36.75. Note that price is still within the monthly BBs and the upper BB is now in between both of these S/R levels. The weekly chart below shows a monthly R1 for this year at $32.06 and for last year at $37.50. Both are very similar to the levels I identified. Hence, it appears therefore logical that price should “stall” in this area, also given how overbought (weekly RSI5 is at 95.55, as is the daily RSI5 btw) price is. However, the weekly BBs are expanding and suggest further upside.

YOKU weekly 05242015b

Also the daily chart -below- shows how the daily BBs are expanding, but as with the weekly chart, price is now almost entirely outside the upper BB, and therefore would want to “fall” back inside. The $32.50 area may be the first level for the first sellers to show up. Note how price tested the levels of the august and November 2014 highs of around $22.50 earlier last week. Price held and then broke out. Hence, and although not highlighted here, this is an important level to watch, as is the $24-$26 area. Therefore I do expect price to retest these levels: what once was resistance may now act as support.  FYI: I am not a buyer at these levels, but will patiently wait for the retest. Patience is the name of the game.

YOKU daily 05242015

 

 

 

 

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