Saturday, July 19, 2008

GOOG Update for 07.19.2008


Monthly chart shows a lower high in place. Currently price is below the 8ema, and below key LIS and psychological level of $500. No buy signal/pattern evident on this timeframe.

Weekly chart shows increased selling pressure this past week. Price is currently below all moving averages on this timeframe. No buy signal/pattern evident on this timeframe.

Daily chart shows an exhaustion gap was created in April 2008, when the bulls managed to take price as high as $599 before the bears took over. Since the April high was made, price has been making lower lows and lower highs. Google earnings proved to be a disappointment on Thursday, and traders gapped down the price on the open of Friday's trading session. This breakaway gap on Friday leaves an island cluster above Friday's opening price. This indicates a major shift in trader sentiment. The case can also be made for having 5 waves up into the $599 high. Look for continued weakness and possible consolidation/trading range before next leg down.

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