Holding Steady
Google stock made another inside bar today.
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.
