Google Stock Quote

Just a technical word-of-warning. GOOG stock has had 8 consecutive days of higher lows. Depending on your perspective this is either good or bad news.

Good news because the stock has been strong on the recent breakout to new highs. The stock has had a number of large range days on increasing volume leading up to new highs. That’s good.

The last few days of trading in new price territory has occurred on lower volume. Not surprising given what has transpired.

The bad news, if you consider it, is that the recent rally appears to be running out of steam. When I mention that the last 8 days had occurred with higher lows, that implies that when (not if) the stock makes a lower low, we have to deal with all of the short term traders who have their sell stops just below the recent lows. Also note that today’s price bar is the first daily price bar in seven trading days that has the close less than the open. That is NOT a bullish sign. And to top it off, the stock made a new all time intraday high (i.e. - “turtle soup").

I’m not playing the doom-and-gloom card here, just want you to be aware of the “technicals” which are pointing to a short term top for GOOG.

That’s right, it’s make or break time again for Google’s stock. We are sitting on the cusp of greatness - or the brink of disaster. Alright, maybe that was a bit dramatic …

After successfully testing the 200 day moving average back in mid-August 2007, GOOG made a brand new all time high this Friday. Friday’s high ($560.79) and closing price ($560.12) cleared the previous all time high set back in July at $558.58. The last four trading days were all relatively large range days. Everything signals good times ahead.

With that said, stock trading history is littered with stocks making new highs that fail to continue further - double tops that become self fulfilling prophecies of the twilight of stock price appreciation. Can we expect to see GOOG follow this tragic path?

Just a minute, let me look into my crystal ball.

I’m back now and hoping that you realize there is no way to know what the future holds for this stock. We have to make decisions that rely on the hard right edge of trading. In real time, making decisions that rely on information to date and expectations of things to come.

Here’s what I “think” might happen. Google stock will go higher. I don’t expect any significant loss in the recent price gain. I also wouldn’t be surprised if we see a cup-n-handle formation occur where the stock pulls back “a little bit” before continuing higher. An inside bar setup would provide a decent setup for entering this stock on the long side.

By now you should no better than to let my thoughts ruin your ideas for GOOG … now go forth and do what you need to do.

So much for GOOG stock price stopping at the 50 day moving average.

Today (so far) and yesterday are large range up days for GOOG. Today’s price even started with a gap up. It certainly looks like GOOG is back to its old pattern of higher highs and higher lows after testing the 200 day moving average around $490 in mid June.

The down gap that formed in mid July is now officially closed. For those who aren’t familiar with the stock market lore that says “gaps tend to be filled", this is a real time example of that principle in action.

Now what? Does the stock continue to new all time highs - or test and fail to continue higher? All very good questions that the stock itself will answer in good time.