Failure To Respond
That’s what happened with the share price of Google after the earnings announcement. The better than expected earnings announcement resulted in a ‘pop’ in the stock price. The stock gapped up more than 8%.
Then reality struck. Not quick and fast, but the price retreated from a recent high after earnings near $450 to the current price of $395.20 as I write this message. In other words, no follow through.
Looking at GOOG stock from a technical perspective. Today’s price bar (as of now) forms an inside bar with yesterday’s price bar. Inside bars are often a sign of indecision with the current trend. The current short term trend is down.
What’s even more interesting, is that yesterday’s price bar is an inside bar with the previous inside bar. Now if today remains an inside bar through the end of trading we have a double inside bar.
What’s so special about that? Well, it’s like a spring ready to release. You would expect the price to move rapidly once the inside bar(s) high or low is exceeded.
I’ll sit patiently waiting for the stock to make a move, either to the upside or the downside before taking a position.
