Google Stock Quote

GOOG’s at it again.

The stock took out the double inside day bar’s to the upside.

double inside bar

Traders taking a long position above yesterday’s high will have a trailing sell stop order below today’s low or yesterday’s low (at least those traders who plan on staying in business).

Obviously, Google is on a tear. Don’t be surprised if the stock hits $200 in the very near term.

GOOG put in a rare double inside day.

Today’s price range occurred within yesterday’s price range. Yesterday’s price range occurred within the previous day’s price range.

double inside day

Considering that the stock was up significantly over the past week after reporting earnings, this price action is not altogether surprising. What will be interesting to see is which way the stock breaks out.

Based on the upside momentum, the stock can be expected to move higher. Trading above today’s or yesterday’s high is a typical low risk entry price for a strongly trending stock. As always, traders who plan on keeping money in their account will use stop loss orders accordingly.

Now that earnings are out and the stock has gapped up to new highs, don’t be too surprised if the stock consolidates those gains before moving higher.

Here’s potential support levels based on fibonacci price retracements:

15 minute chart

The first quarterly results posted by Google as a publicly traded company are, to say the least, impressive.

Probably the most bullish piece of news is that revenues were $806 million vs expectataions of $752 million.

I won’t try making sense of the earnings estimate … too much hand waving.

After hours pushed the stock up another $12. That’s on top of being up almost $9 for the day trading session.

It will be interesting to see what tomorrow’s price action brings.

Here we go again.

Let’s recap yesterday’s price action. Google reversed to the upside at the 50% price retracement (see previous post). By the end of the day, the stock was more than $2 higher than the low for the day.

Today started off to the downside with a gap down from yesterday’s close.

And guess where today’s price low came in at? That’s right, right at the next Fibonacci price retracement level, the 62% level. Today’s low was at $141.21 - the 62% retracement was exactly $141.21.

GOOG 62% retracement

What makes this retracement level and even more likely reversal level is that the price action from Friday’s high unfolded in a simple ABC format, where the “A” downswing is equal to the “C” downswing.

GOOG ABC

And the result:

GOOG at the end of the day

Google stock has been “behaving” very well with respect to Fibonacci retracements recently.

After the stock gapped up on Wednesday, October 13th, price declined right down to the 50% retracement level.

GOOG 50% retracement

Another gap up on Friday the 15th … and back to support at the 50% retracement.

GOOG 50% retracement again

Amazing!

Yesterday’s stock price bar was a bullish setup.

And what happened … the stock gapped up to new highs.

This price action should come as no surprise as the stock was at a likely level of support based on previous price swings. See this 60 minute chart with previous downswings marked off.

Google 60 minute chart

Now what? As bullish as yesterday was, let’s take a closer look at today’s price action.

Yes, the stock closed up, but the stock closed down relative to the today’s open. If the bulls are still in control of this stock, then don’t expect prices much lower than the previous swing high on October 7th at $139.88. Maybe as low as yesterday’s high of $137.61.

And interestingly, those recent highs correspond with the Fibonacci 38% and 62% retracement levels of the recent upswing on the 15 minute chart.

Google 15 minute chart

Google’s price bar is bullish for tomorrow.

1) Bullish engulfment - open is less than yesterday’s close, close is greater than yesterday’s open. Yesterday was a down day with the close less than the open.

2) Lower low

3) Higher low

Trading above today’s high is a low risk buying opportunity.

Google daily chart

The stock is showing signs of weakness. Seems that the $140 level is tough enough resistance to higher prices.

Take a glance at the 60 minute chart:

GOOG chart

Notice that the stock has declined a similar amount in the recent past - and then moved to higher prices. This price level is a likely level of support based on previous history.

With that said, if the stock forms a reversal bar at these price levels, then a long position is a low risk trade.

If the stock continues lower, then this will be the largest price decline since the stock started it’s most recent run up from ~$100 to almost $140.

Again, if the stock does move lower, the next level of support is at the confluence of retracement levels from two different time frames - ~$4 lower than the current closing price.

Here’s the chart:

GOOG price target

P.S. - Charts created using this program.

Google is holding on.

Today’s price action is impressive in light of the general market’s weakness. Google faded early on, but finished the day strong.

I mention the $140 level as that can be expected to act as resistance. For whatever reason, the round numbers tend to act as support or resistance depending on which way a stock is moving. If the stock does have difficulty with this price level, then expect support near the $135 level. That’s were the stock chopped around after gapping up on October 4th.

No doubt about, GOOG is on a tear. Until the stock makes a price swing (on whatever time frame) to the downside that is greater than any other price swing on that same time frame, the stock is in an uptrend. Just eyeballing the 60 minute chart, it looks like the largest downswing is ~$6. Until the stock drops from the recent swing high by at least that amount - and today’s high of $139.88 is the current swing high, which targets ~$133.88 - the trend is up.

And even if it does drop, the stock *should* retrace that drop and then continue lower.

No need to speculate on what might happen. Rather, staying focused on keeping a trailing stop on a long position that allows for enough “breathing” room will keep you in a profitable position.

The stock just keeps moving.

Today’s price bar was an outside bar - the high was greater than yesterday’s high and the low was less than yesterday’s low. There is no upside resistance - how could there be as the stock is making new highs. My *guess* is that earnings will be the only thing that slows the stock down. Will have to find out when the quarterly earnings are due out?