Hesitation In The Google Advance
Don’t act too surprised if Google’s stock price gives up some of the recent gains.
Here’s a stock that has advanced more than 10% since the end of last year. And the end of last year is only six trading days ago. A lot of that movement was driven by “news", in particular, “good news".
Eventually the impact from news wears off. Yesterday’s daily price bar is an early indication that the stock is slowing down. In candlestick terms, yesterday was a “spinning top". Yesterday’s open and close were at about the same price and in the middle of the day’s range. If you look at an intraday chart for GOOG, you’ll notice that price declined at the end of the day, not advanced.
Anyway, this is all specualtion (and isn’t that what trading is all about?). Until the stock takes out yesterday’s low at $460.94, the short term trend is up.
