YELP dominated by bulls lifting the market higher throughout the day
Yelp Inc. (YELP) Technical Analysis Report for Feb 13, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, YELP ended Thursday at 36.50 surging $1.14 (3.22%) on high volume, significantly outperforming the S&P 500 (-0.16%) ahead of today's earnings report. This is the biggest single-day gain in over three months. The last time we've seen such an unusually strong single-day gain on February 4th, YELP gained 1.88% on the following trading day. Today's close at 36.50 marks the highest recorded closing price since January 17th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 35.38, the stock confirmed its breakout through the previous session high after trading up to $1.48 above it intraday.
Daily Candlestick Chart (YELP as at Feb 13, 2020):
YELP is set to report earnings after today's market close. For the upcoming report, analysts expect the company to have earned $0.26 per share. The company's last earnings report was released on Nov. 7, 2019, when Yelp Inc. reported earnings of $0.14 per share failing market expectations by -26.3%.
Thursday's trading range has been $1.91 (5.42%), that's far above the last trading month's daily average range of $0.93. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for YELP.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 34.95 earlier during the day, the market bounced off the key technical support level at 35.06 (S2). The failure to close below the support might increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 37.49, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S2" stand out. Its common bullish interpretation has been confirmed for Yelp. Out of 4 times, YELP closed higher 75.00% of the time on the next trading day after the market condition occurred.