Stock Technical Analysis: Go Go GOOGLE!

Written by Taurus on October 8, 2009

Here’s a stock technical analysis on GOOG (Google Inc.), the technology company that needs no further introduction.

Stock Technical Analysis: GOOG

Stock Technical Analysis: GOOG

While many stocks have fallen due to the recent stock market correction, GOOG has proven to be pretty resilient and managed to break out of a bull flag just 2 days ago. The breakout was also very near the base of a channel, which meant that the risk of buying at the breakout was lower. The huge volume increase yesterday also confirms this break as a potential real move upwards.

If you have already bought GOOG when it broke out of the bull flag, great! A potential strong resistance situated at  $556.00, which would correspond to the upper trendline of the channel. It was also a strong resistance back in July 07 and during the period of April-July 2008. If you have not joined the ride upwards yet, it might be a little risky to do so as prices are already more than halfway up the channel. I would wait for a retracement, back to the bottom of the channel before looking for a signal to buy.

A sell signal will be initiated only if prices manage to break and close below the lower trendline of the channel, with increase volume for confirmation.

GO GOOG!


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