Google Stock Strong
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.
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.
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The pressure should be absorbed now by the news that original large investors sold last
week and that Google’s founders also issued details of their intentions to use automated
selling to release part of their shares. This is a clear short term sell signal and may
mean that many smallers investors jump out - at least until things stabilise.
That won’t be until after the February 14th mass lock-up expiry is reached.
More turbulence ahead…not for the faint hearted!
Comment by Robin Yearsley — 21 Nov 2004 @ 1:23 PM EST
Google has clearly been trading in a downward trend, one up day is not going to be enough to stop the freefall of this stock. Insiders are all selling and a lawsuit has been claimed against Google. Lets hope the bloodbath is not too violent.
Comment by Kevin — 22 Nov 2004 @ 9:17 AM EST