I bought a starter position in YELP today. I like the business, and I also like the technicals. I started considering it after @ragincajun and @the_real_fly
were taking about it.
Here’s the daily chart:
I like the consolidation here under $24. I also like that price is still above the initial IPO trade price. I also like that it has been creeping up slowly lately, a few percent at a time. I bought at $23.20, and placed my stop at $20.20, underneath the recent swing low. I decided to enter at the price I did from the 5 min chart, as we retraced to the day’s VWAP:
I intend to hold this for at least a few weeks as a position trade as long as I don’t get stopped out. I would consider taking partial profits at a retest of the $26 high, and I will also consider adding more shares later if the stock acts right by making new highs.