Is Google Finding Support
Let’s look at internet giant Google (GOOG) to see if the stock may be at support or resistance.
There’s a few patterns to note in the stock.
First, look at the triangle consolidation (not shown) that preceded the price reversal at the start of 2008.
Second, notice the stair-steps of lower lows that were met with a positive momentum divergence, also which preceded the price reversal. Momentum often precedes price.
Now, note that price ran higher following the large momentum (earnings) gap impulse, showing massive strength (price didn’t even attempt to fade or fill the gap).
Now, price is above the 20 and 50 period moving averages, and could be finding support at the 200 day moving average. If so, price could build a mini-base for higher prices about the $550 level. Should price break this level, it would mean a deeper retracement could be possible, but the momentum is strong with this stock.
Continue to watch this stock behemoth for signs of continuation!