logo
  Join        Login             Stock Quote

Is Google Headed Higher?

 March 25, 2008 02:36 AM
 


Google (GOOG) stock has been beaten down by the bears since last November, when the stock made an all-time high near $750. Recently, the stock traded to a recent low of $425, but may the stock be forming a base?

The Daily chart shows a recent positive momentum divergence, following a bear-flag continuation patter which recently achieved (and exceeded) its price projection target. Markets usually attempt counterswings following a successful ‘measured move' out of the pattern, which could be what we're having right now.

[Related -Why it’s time to sell Microsoft]

Price broke strongly above the 20 period moving average, increasing over 6% on Monday, but price has a little further to go to the upside to resolve the divergence properly.

In fact, I would project a potential target resolution near $500, which would be just beneath the falling 50 period moving average. One might even consider this a ‘magnet' trade that would eliminate a large percentage of 'shorts' in the stock, while simultaneously drawing in ‘bottom-fishers' searching for value.

We can't forget that the trend is still strongly downward sloping, and the moving averages are in the most bearish orientation possible.

Nevertheless, a counterswing up is probably overdue and is most likely occurring at this moment. There could be a $25 upside target to play for if you're rather aggressive – maybe you'd rather use a few options rather than outright share purchases if you're feeling like trying to catch a falling knife? Be careful either way.

iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article image3 US Updates Show Ongoing Growth

Three economic updates today provide more evidence that moderate growth endures for the US. The numbers du read on...

article imageBuy These Solar Stocks Before They Snapback

Sometimes the market hands you a gift. And it would be foolish not to take it. Thanks to general market read on...

article imageInvestors Are Even More Euphoric And Confident.

As noted on the blog last Thursday, even though the market had been down for three straight weeks, last read on...

article imageThe Butterfly Machine

There’s a phenomenon called the Butterfly Effect. One common quotation is “It has been said that something read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.