Google Stock Quote

Finally, a little sign of some bullish behavior. After the April 2007 earnings announcement of better than expected earnings, the stock has been in a funk. The stock hit a local high of $492.50. This past Friday’s closing price was at $466.74.

Here is why I am starting to like the stock from the long side again on a technical perspective.

First, the last two day’s price action took out the mid April support level of $462.24. Even better is that the previous day’s closing price was below that level - Thursday’s close came in at $461.27. Think about that, a previous support level was taken out on a closing basis, that’s something that typically gets the bears all exciting. On the other hand, Friday’s price action reverses a lot of the bearishness. Friday’s low is lower than Thursday’s low (pseudo-bearish confirmation), but closes up for the day.

Second, the stock seems to have found support along one of those popular moving average, the 50 day moving average. I’m just reporting the facts, folks. Look back at Google’s recent history and note the respect shown by the stock to the two most popular moving averages, the 50 day and the 200 day simple moving average and see what I am talking about. This past February, the stock’s advance was stopped cold by the 50 day MA. In early April, the stocked gapped through the 50 day MA. Within the next two trading weeks, the stock tested the 50 day moving average and support held. Now look at where the stock is at. The stock *appears* to have found support along the 50 day moving average. This is the hard right edge of trading - hence the use of the word “appears".

Finally, our good friend Fibonacci is showing up again. Look at the chart and tell me what you see. The stock is coming in for a landing at a price and time symmetry point. Price is very near the 50% retracement level and the same for time. A great time (and price) for a reversal to the upside.