SubscribeGoogle: Classic Head Fake
December 6th, 2006 • Related • Filed Under
In a previous post I noted that Google was trading in a descending triangle on the recent daily charts. This typical bearish sign formed the pattern, but the result was nothing but a head fake. Am I upset or mad that the pattern did not complete as predicted?
No way…
In reducing my share size I was able to avoid any unnecessary downside risk and exposure in the event that the breakdown did occur. Now that you and I know this is no longer the case, there is reason to believe that Google stock will finish the year on a positive note and possibly rally to $550 per share or more…
In the two-month daily chart you can see how Google managed to pull up out of the triangle instead of collapsing south towards $460 or worse:
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Comment by Cal on 7 December 2006:
I knew my Apr GOOG $500 Calls would be worth it. heh! Nice charting!
Awesome!
-Cal
Comment by Stephen Oakes on 8 December 2006:
Thanks Cal,
On the 10-day hourly charts we may drift a little lower, but at least we are not falling off the cliff. Google will probably trade sideways before any further moves. The sooner the better because once January hits there is a sell off for those looking to grab tax beenfits. We’ll see how it plays out.
Stephen