Both Yahoo and Facebook have overextended themselves because investors believe the worst is over and sunshine and rainbows lie ahead:
$FB potentially has another 70-75 cents of upside left and by that time, its RSI will be pushing 80 and it’ll be trading in an area of past consolidation (around $28.10). Looking for a 4%-5% correction from there.
$YHOO has rallied a tad farther than expected. It’s consolidating around support (formerly resistance), but the MACD and RSI (which is nearly 82) look a little tired going forward. Even with the bullish option activity, I’m expecting a return to the low $18s before it moves higher.
Questions? Comments? Leave me a reply.