Google Stock Quote

Google stock has been moving higher.

Unlikely the previous rally that took the stock from $165.27 to a high of $189.80 in a matter of a few days, this rally is choppy.

There are two gaps on this recent rally, the stock opened higher than the previous high (not just the previous close)! Neither of these gaps have been filled.

I’m going to a paint a less-than-rosy scenario for this stock in the short term.

First, gaps have a nasty habit of being filled. Gaps act like a magnet for prices. In this case, the argument is for lower prices.

Second, until the stock at least matches the previous $24.53 runup that started from the $165.27 low on 9 November 2004, the recent downtrend is still in tact. The upside target to match that move is $185.84. Today’s high of $182.95 is a little shy of that price.

matching move

That’s exactly what this stock is doing … nothing.

After making a fake out to the downside yesterday, Google stock turns around and did the same thing, but this time to the upside.

Today’s price high took out the two day high. I mentioned that the stock was setting up a “pressure” situation. That “pressure” hasn’t turned into a rally to higher prices. Given that tomorrow is the day before the U.S. Thanksgiving holiday, I’m not expecting much movement.

two day high

What I said recently still holds true. The stock is making lower highs.

Here’s the thirty minute chart with the daily highs marked off for the last seven trading days.

lower highs

Friday’s inside bar gave way to lower prices. Day traders would take a short position as the stock traded below Thursday’s low. Inside bars are typically a sign of indecision with the current trend. In this case, the short term trend is down.

If the stock continues lower from here, keep your eyes on the 100% price projection previously mentioned at $153.47 as a possible price level for a reversal back up.

Note that while today’s low is less than previous lows, the close is greater than the recent lows near the $164 range. Today may very well have been a test to shake out the nervous sellers.

Considering the poor performance of the overall stock market on Friday (major indices down 1%+), Google stock did surprisingly well.

Friday’s price bar was an inside bar, the day’s range was well within the previous day’s range.

inside bar

From a bullish perspective, the stock has made five consecutive lower highs. Trading behavior like this sets up a “pressure” type situation when the stock does finally trade above a previous high. Be on the lookout for explosive trading to the upside.

Keep in mind that this past week, more shares became available for trading. One would think that those with a large appetite (read “mutual funds") for stocks would use this opportunity to snap up shares from those willing to lock in big profits.

Yesterday had all the makings of a reversal to higher prices for Google stock. The stock closed higher than the open after making a lower low.

That reversal never carried through today. Sure the stock rallied a bit. It never traded above yesterday’s high price which is the initial sign that stock is continuing higher.

The next likely level of support is at the recent lows around $164.

From there, if the stock does continue lower, then the 100% Fibonacci price projection level is at $153.47.

fibonacci price projection

It’s another one of those Make Or Break situations for the stock.

GOOG has formed a pullback - in this case, a bullish pullback. The stock has made three consecutive lower highs. Yesterday’s price bar was a reversal bar to the upside - the stock made a lower low and closed greater than the open and greater than the previous close.

If trades occur higher than yesterday’s high but fails to follow through with conviction, then the lower price targets previously suggested come into play.

pullback

Now, I’m not promising anything here.

Just look at this chart and tell me where you think the next price target is for Google. Go ahead, click on the link to open the 60 minute chart:

60 minute intraday chart

If it helps, read the comments posted previously regarding an inside bar. Then, click on the “Comments” link just below and let me know where I am thinking this stock might be headed to next.

By the way, let me throw out this little piece of information. Today, selling restrictions on ~39 million shares were lifted. This effectively doubles the number of shares available for trading.

GOOG consolidate the recent gains. Today was an inside bar - today’s range was within Friday’s range.

Inside days are typically a sign of indecision with the current trend. As such, inside bars typically setup a low risk trade in the direction of the next breakout. What works well is to position yourself as the stock trades outside of the current day’s range - or for more confirmation and subsequently more risk - a break outside of the previous day’s range.

The 15 minute intraday chart shows the stock forming a bullish triangle - progressively lower highs and higher lows (I didn’t draw in the upsloping trendline, use your eyeballs). Be on the lookout for a break above the downsloping trendline.

15 minute chart

Notice that Google formed a similar pattern then moved more than $20 higher in just a few short days.

What also setups a buy situation is the recent decline on the intraday chart stopped right at the 50% price retracement.

Let see if the bulls can take charge of this stock again.

Google stock has had the first major correction to it’s bullish run up.

After peaking at $201.60 earlier this month, the stock dropped to a low of $165.27 earlier this week. Since then the stock has rallied.

Interestingly, the stock found support on Friday right at the 50% retracement level.

50% price retracement

The stock went on a run today stopping just below the 50% Fibonacci retracement level of the recent decline off of the all time high.

Coincidently, the high came just after the Fibonacci 62% time retracement.

stock price higher

Contrary to my previous comments, the stock did not continue to decline to the $162 level suggested previously - go figure

The free-fall halts!

Google didn’t continue lower today. Instead, today’s price bar forms an inside bar - a sign of indecision with the current downtrend.

Looking at the intraday chart shows that Google stock’s afternoon high is at the 50% retracement of today’s range. See what I mean:

intraday chart

Also notice the 62% retracement of today’s range coincides with the 38% retracement from Thursday’s afternoon high to Friday’s low. If the stock continues higher tomorrow, the ~$177 price level could act as resistance to higher prices.

Google stock wasted no time showing its intentions Friday - down.

The stock spent the morning dropping $10. The day started out with a gap down on the open and made the high of the day almost immediately. The stock blasted through the 100% extension level at $179.60.

The afternoon was spent in a trading range between $169 and $172.

So what’s the next level of support based on Fibonacci? (more…)

That’s right, GOOG is giving up some of those gains.

Step back for a minute and consider that the stock has run up more than 100% since going public. A little correction is more than overdue.

Google clearly broke through support today. The stock even gave traders another chance to exit long positions near the $190 level later in the day.

Guess where the stock found a low today?

Near the 62% price extension level. See the chart linked below.

price extension

Note: The price extension is the difference between the swing low at $190.60 and the swing high at $201.60 multiplied by Fibonacci ratios and then subtracted from the low.

Also, if the stock continues down from these levels, the next likely support level is at the 100% extension level at $179.60.

What also makes this a likely level of support is $180.00 is a previous low.

If the stock closes below $180 tomorrow, I’ll post another chart showing the next likely level of support …

GOOG didn’t even make an effort to respect the support level just above $190.

The stock gapped down to open at $188.25 today. Within the first ten minutes, the stock comes up to test the old suport level above $190. After getting rejected at that price level, the stock is down to $183.35 within the first hour of trading.

As I write this, GOOG has tested the $190 level again - and again was rejected. This intraday price action signals that the bears are in control for now.

As mentioned last night, I’ll be interested to see how the stock closes today - less than one hour from now.

Google stock did two things today.

The stock testing the top of the ~$10 trading range. And, is getting ready to test the low end of the range.

The first fifteen minutes of trading saw the stock take out the $200 barrier - if only for a brief time. From there, it was all downhill.

trading range

The post election stock market experienced euthoria right from the start, then settled in for the rest of the day in a relatively tight trading range before taking a little nose dive around 3PM eastern time - followed by a slight recovery.

Not GOOG though. The stock never experienced the end-of-day recovery that most of the market did. Instead the stock stopped shy of the bottom of the trading range that it has carved out the last few days.

I wouldn’t be surprised if Google trades below $190 tomorrow. What will be of interest is how the stock closes for the day.

If the stock closes above the $190.10 low, then the bulls have a very good chance of running the stock back to $200.

If the stock closes below the recent lows, then the stock could be entering a correction.

Google stock made another inside bar today.

inside bar

Inside bars are typically a sign of indecision with the current trend. In this case, the trend is decidedly up.

On the bullish side, the intraday price action was bullish with the stock finishing strong at the end of the day on decent volume.

Of slight concern is that the previous day was a reversal bar to the downside. On Friday, the stock gapped up to new all time highs, flirted with the $200 level ($199.95 - close enough) and closed lower than the open and lower than the previous day’s close. Given that the stock has run up significantly, this comes as no surprise.

So what’s next?

A break above or below today’s high or low, respectively, is typically a low risk way to position a trade - at least for the very short term. Note that last week, the stock formed the rare double inside bar with two consecutive days having ranges within the previous day’s range. Once the stock broke to the upside, the stock easily moved more than $10 in just two days.

Let’s see what tomorrow’s price action brings.