Google To Earth
It had to happen.
After a significant runup in the stock price since the most recent earnings announcement a little over a month ago, the stock finally broke.
You can’t say that this not expected. A stock that breaks out and continues to advance more than 20% is bound to take a break from the march to higher prices.
Yesterday’s price action was the early indicator that a top might be in. Yesterday’s price bar was a reversal bar to the downside: Opens at a new all time high, advances slightly higher, but closes down for the day and down relative the previous close. As a matter of fact, the stock closed below Friday’s low, “bearish engulfment". Granted, Friday was the day after the U.S. Thanksgiving holiday - typically a low volume, small range type of trading day.
Now the trick is to realize when the stock is ready to move higher again.
I’ll be watching for a reversal bar at the obvious Fibonacci retracement levels across mulitple time frames. If you are interested in knowing how to calculate and use those price levels, use the sign up on the side to get on the Fibonacci retracements newsletter.
