What Happened Today
I admit it, I wasn’t paying attention today when GOOG made it’s afternoon run high - and subsequent retreat back to where it started the rally.
Nice little afternoon treat on decent volume that eventually gave back everything that it delivered. Not a real promising scenario, the stock looks like it is ready to make a run to higher prices but reverses - hmm??
What gives?
I’m sure there is some “news” to explain the whole situation.
I’m not showing the daily chart, but take a look at it. Notice that the 50 and 200 day simple moving averages are both pointing up and price seems to be riding the 50 day MA. This could be a slow-and-steady price increase that sneaks up on us. Since the beginning of March 2007, the stock has been making mostly higher highs and higher lows.
Today’s price action makes me think we are going to have some consolidation at least in the near term before moving higher (assuming that is where prices are going). I’ll be watching the daily charts 50 day and 200 day moving averages, especially if we get a break on higher than normal volume.
