Google Stock Quote

The last few messages have talked about the possibility of lower prices and Google following this nice pattern of reversing.

Well guess what, it looks like the obvious pattern might not work anymore. Read the last few messages to understand what I am saying.

Friday’s price bar was a classic reversal to the upside.

The stock traded below Thursday’s low, closed greater than the open, and closed greater than the previous day’s close. Doesn’t get much better than that.

The only thing now is to confirm the reversal with a trade above Friday’s high. My preference is to NOT take a long position if a stock gaps above the reversal day’s high. I would rather miss a perfectly good trade then fall for the old “gap and trap” routine that happens frequently.

The other price action that bodes for higher prices now is the three consecutive days of lower highs. This sets up a “pressure” situation where prices move higher once the pattern of lower highs is broken.

All of this speculation is fine - now it’s time for the stock to do it’s thing.

reversal bar