Google has been a leading stock in 2007, and traders expect it to continue to outperform. A classic pattern in technical analysis is forming which we can monitor for resolution, or potentially trade for profit.

Google is forming a triangle consolidation, out of which price can be expected to trend for a sustained period following the break.

Those who love to play options may find that implied volatility is lower due to price consolidation, and may find it beneficial to purchase straddles or utilize other strategies that benefit from increased volatility.

Remember that it is impossible to forecast the exact break of the triangle consolidation pattern, and anticipating the direction prior to the break can lead to whipsaws or blindsided losses, as moves out of consolidation tend to occur sharply and sometimes without mercy.

Nevertheless, Google is experiencing a classic pattern complete with diminished volume as the pattern forms and reaches completion. The structure of the moving averages also confirms the consolidation, with the 20 period moving average serving as the near exact midpoint of the triangle, while the 50 period average serves as the support zone or lower trend line.

For those trading Google, or following this stock, it may be a good idea to learn what this pattern means and what might be in store for Google short term following the resolution of this potential pattern.