Google Stock Quote

Well, so much for that. I was all primped and ready to watch the stock go lower from here. What happens? The stock reverses back to the upside almost immediately. An almost-immediate reversal back to the upside indicates higher prices likely. I know, I know, I’m not saying anything earth shattering - just pointing out the obvious.

Do note that this mini-rally from the middle of the month is occurring with less momentum than the leg up that topped out earlier this month. Volume is not as high and just about any momentum indicator (Stochastics, RSI, MACD) will likely show a divergence if price closes higher than the previous all time high.

I’m going to tell you in words what you can see on a daily stock chart.

Google stock formed a bearish engulfment with yesterday’s price action (20 June 2007). The open was greater than the previous day’s close, the stock made a new local high, then closed down lower than yesterday’s low.

If this is a change in direction AND the stock follows a nice A-B-C pattern with the A down leg equal to the C down leg (hasn’t happened yet), then the $491 price level is the obvious target.

The $491 level corresponds to (1) the 100% price projection, (2) the 50% price retracement of the recent up move from the mid-May 2007 low to the recent all time high, and (3) near the previous gap-and-trap high of 20 April 2007.

Now let me show you a GOOG price chart.

Not too surprising that Google is at an all time high. What is good to see is that today’s new high was done on decent volume and exceeded the 100% price projection.

Check out the chart. The “1 or A” leg up that started in early March 2007 and completed with Google’s better than expected earnings (20 April 2007) has been matched AND exceeded off of the leg up that began on 15 May 2007. What I would like to see is the stock stay above the 100% price projection of $512.91. If price does pull back then I would expect the ~$513 level to offer decent support (double top - 22 November 2006 and 16 January 2007).

For those already looking ahead to higher prices, the 162% Fibonacci projection level is at $547.21. Think we can get there?

 

 

 

 

 

 

 

 

 

 

I’m kidding of course. I have noticed that the media is getting all hyped up again as Google’s stock price is getting close to the all time high. Can’t we just make the new all time high event a non-dramatic experience?

Probably not. Not when you have the fool waxing eloquently about staying above 500 this time and if anyone from the street puts together a piece about how the sky is the limit for this stock … I shudder to think what will happen.

GOOG has been firing off technical signals for awhile indicating that higher prices were likely. Sure I got the timing wrong by a few days, but in general Google’s stock has “behaved well” according to technical analysis. Let’s see what happens when the stock makes a new all time high.