Google Stock Quote

If a picture is worth a thousand words, then a video is worth …

Here’s a 50 second video of Google stock from the day it was born to the present. The red line marks the 50 day moving average and the blue line is the 200 day moving average.

It should be obvious what the moving average squeeze is by the end of this video.

I meant to include a chart for this, but I will leave it up to you to confirm this on your own.

As I write this at 9AM Eastern time on 29 March 2007, I can’t help but notice that GOOG is getting squeezed between the 50 day and 200 day simple moving average. Pull up a chart and you will see exactly what I am talking about.

In the middle of this month, GOOG approached the uprising 200 day moving average. The 200 day MA has served Google well in the past and looks to continue. There has been no serious price violation of this moving average to date.

Now take a look at the downtrending 50 day moving average. In the last third of last month, the stock threw a reversal to the downside right at the 50 day moving average. Today’s price action is right at the 50 day moving average. If history repeats itself, expect the downtrending 50 day moving average at ~$465 to contain any upside price movement.

The 50 day and 200 day moving averages are converging - the 50 day near $465 and the 200 near $440 - that’s the price range I would expect GOOG to stay in until the inevitable price break occurs.

Using my eyeballs, it looks like Google’s 200 day moving average is around $436. If you look at a daily chart, notice that in early March 2007 and again now (16 March 2007), Google’s stock price is hovering just above that price level. This is likely to turn into a make or break (MOB) scenario soon. It has to.

The 200 day moving average has served GOOG well in the past, will it do so again. Time will tell.