SubscribeGoogle: Descending Triangle Pattern
Google (GOOG) stock is nearing the completion of a descending triangle pattern on the three-month daily charts. Normally this pattern would indicate a continuation of the previous trend. In this case the stock has recently been trending downward and there will soon be a definitive breakout. Because of the nature in the pattern in the short term there is room for this stock to quickly push lower in increments of $20 moves with the next layer of support being slightly above $460 per share.
In order to avoid this catastrophe the stock will need to find strength sooner rather than later. If this is a bearish head fake and the stock can move to the upside from this descending triangle pattern, then we will very likely see this stock climb past $500/share over the next few weeks. On the other hand, if the stock breaks downward from the triangle it will be a matter of months to reclaim lost territory.
Loading ...
Comment by jackie on 1 January 2007:
You were so right. Where do we go from here now that the stock is at 46?
Comment by Stephen Oakes on 2 January 2007:
Jackie,
Thank you for your kind words. In regards to the stock, Google will likely drift sideways until quarterly reporting which I believe is at the very end of January. As usual, the company should blow away analyst projections and send the stock back up. Once a clearer picture evolves I will post another update on GOOG