Russian Internet portal Yandex (YNDX) has formed a cup-without-handle base.
It's completed six weeks of sideways movement, correcting just over 15%. The buy point is 42.10, just as the stock hits a new all-time high.
It would be a second-stage base made somewhat suspicious because of the high volume on the left side and light volume on the right side. Because of the disproportionately heavy down volume during the correction, it has a 50-day up/down volume ratio of 0.9. Readings better than 1.0 are preferred when a stock breaks out.
Yandex is the dominant Russian Internet portal with a 62% market share. Its chief rival is Google.ru, the Russian operation of Google (GOOG).
Yandex offers its search engine not only in Russia, but in the former Soviet republics of Ukraine, Kazakhstan and Belarus and, most recently, in Turkey.
The stock carries a certain amount of political risk. Doing business in Russia can sometimes attract unwanted government attention, and Russia has tense relations with some of the other countries in Yandex's universe.
The company, based in the Netherlands but with operational headquarters in Moscow, has been working hard to stay ahead of the competition.
It recently revamped its maps application to give more detail and accuracy in the countries in which it operates. It acquired KinoPoisk, a popular Russian-language website dedicated to movies, television programs and celebrities.
It offers cloud storage and owns a 75% interest with Sberbank in Yandex.Money, which is an electronic payments service.
In July, the company's co-founder and chief technology officer, Ilya Segalovich, died after a year of battling stomach cancer.
The company has a five-year annualized growth rate of 46%.
Analysts expect a 30% EPS increase this year and a 24% increase in 2014.
In the most recent quarter, earnings rose 38% from the year-ago quarter and sales were up 35%. In the next report, however, earnings are expected to be flat.
Yandex went public on the Nasdaq in May 2011 with an offering price of 25. It hit a high of 42.01 on the day of the IPO but has spent most of the time since then trading below that level.
Shares ran up more than 45% from a July 10 breakout.