Yandex shares under pressure sellers 7 July reached a new low. The pessimism of investors was triggered by several factors. First, the next wave of ruble devaluation due to falling oil prices. Second, changes to the law “On information, information technologies and information protection” called “right to oblivion“, according to which the search engine will have to take on additional costs for regulatory compliance. Third, the investment house Jefferies July 6 lowered target price Yandex from $ 46 to $ 17.
By a combination of factors, we note that the currency factor is somewhat exaggerated, since dollar-ruble pair is on the April levels and share prices at historic lows. The impact of regulatory initiatives also have built into the price, especially since it comes into force in 2016. Also, legislation, Yandex can get the best prospects for because of the ban or restrictions on foreign software. In the end, Yandex share price is trading at $ 15.4, suggesting a 10% increase in installed Jefferies target price.
As a result, it is possible that the stock once again probe the bottom and can show a rebound.
Formed on the daily chart reversal candlestick combination. On the hourly chart, the formation of reversal pattern “head-shoulders“. On the 15 minute charts has resumed indicator RSI.