Technician’s Edge: A Look at the Two Gs – Google and Goldman

Jan 5, 2010: 3:52 PM CST

My contribution for today’s post at GreenFaucet’s “Technician’s Edge” column is entitled “A Look at the Daily Chart of The Two G’s:  Google and Goldman.”

In the post, I detail observations and levels to watch on the daily charts of technology giant Google (GOOG):

and financial giant Goldman Sachs (GS):

I explain how watching the 20 day EMA can help set-up trading opportunities in strongly trending stocks like Google, and how the expectation now is for a likely retracement to test the rising 20 EMA… though it would be a testament to the power of the prevailing uptrend if Google surged to new highs here at the upper Bollinger Band.

In Goldman Sacs, we have two levels to watch – the $180 level represents the 61.8% Fibonacci Retracement which aligns with the November 2009 price high – a break above that level would likely target a swing to the 2009 highs above $190 or beyond.

However, should price find resistance here, look for support at $170.  Any move under the December lows of $160 per share would argue strongly in favor of a trend reversal on the daily chart.

Visit the “Technician’s Edge” column for full analysis.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

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